UK banks could be under further pressure to curb lending after the G20 drafted rules to force them to bolster balance sheets by as much as £130bn.
Leaders at the Toronto G20 summit agreed in future banks should keep enough capital on their balance sheet to have withstood the aftermath of Lehman Brothers' collapse in 2008, the Telegraph reports.
Britain's banks will have to permanently bolster their balance sheets by as much as £130bn - equivalent to £5,200 for every household in Britain.
Under the previous international banking accords, banks were obliged to hold only 8pc of safe capital on their books to provide a buffer against insolvency.
However, the new rules sketched out at the Canadian summit threaten to go further. This could put pressure on banks to lend as they need more cash to help them strengthen their balance sheets.
The G20's final communiqué said: "The amount of capital will be significantly higher, and the quality of capital significantly improved, when the new rules are fully implemented. This will enable banks to withstand, without government support, stresses of the magnitude associated with the recent financial crisis."
Tighter regulations, including bigger capital requirements for banks, will now be addressed at the next G20 summit in Seoul, South Korea, in November.
However, proposals for a global levy on banks have been scrapped and measures will be left to individual countries. Some countries have already started their clamp-down on the banks with George Osborne announcing a £2bn levy on the sector in last week's Budget.
Leaders at the summit also agreed to cut national budget deficits while trying to promote economic growth.
At the conference, every major G20 country, including the UK, reaffirmed its commitment to halve deficits within three years.
But host Stephen Harper, the Canadian prime minister, said despite cuts, short-term economic stimulus measures would still be needed.
Harper added government debt, as a proportion of the economy, "should be at least stabilised or on a downward trend by 2016".
The G20 had been split over the pace of budget cuts with the US warning against fast and deep reductions as it feared damage to global growth.
However, European members, including the UK, France, and Germany, have already led moves to slash record public deficits, despite opposition from the US which is expected to run a $1.3tn deficit in 2010.
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