UK banks must raise a total of £25bn in extra capital to guard against potential losses and sustain lending, the Bank of England (BoE) has said.

In a statement, the BoE’s Financial Policy Committee (FPC) said only some banks needed to raise more cash, but did not name them.

The extra money is needed to comply with global banking accords.

The order is the first issued by the FPC since it formally gained powers last year.

BBC business editor Robert Peston says in the short term the need to raise cash will be bad news for investors, including taxpayers who still own big stakes in two banks.

Taxpayers still own more than 80% of Royal Bank of Scotland and almost 40% of Lloyds, more than four years after they were bailed out by the government.

The need to raise more capital may delay plans to sell the stakes back to private investors.

Our correspondent says UK banks have been taking steps to strengthen themselves since the financial crisis began, but they still do not have enough capital.

He says the view of the BoE is that the banks will not provide the credit needed for economic recovery unless and until they raise additional capital.

Regulation overhaul

The Bank of England’s FPC has overall responsibility for financial regulation in the UK and is part of a new order of regulation designed to keep the banks under closer scrutiny.

It will oversee two new financial watchdogs: the Prudential Regulation Authority (PRA), which will take over responsibility for supervising the safety and soundness of individual financial firms, and the Financial Conduct Authority (FCA), which will be tasked with protecting consumers and making sure that workers in the financial services sector comply with rules.

The new watchdogs will replace the Financial Services Authority (FSA), which is set to close next week