BANKING shares were in sharp focus yesterday after policymakers ordered them to hold an extra £25bn to act as a cushion against future financial shocks.

The capital shortfall was lower than expected in the City, but there were mixed fortunes for state-owned lenders Royal Bank of Scotland (RBS) and Lloyds Banking Group following the report from the Bank of England’s Financial Policy Committee (FPC). The FTSE 100 fell 11.8 points to 6387.6.

The Bank of England’s capital call saw Lloyds gain two per cent, or 1.1p at 48.7p, while Barclays lifted 0.7p to 287.9p, after the FPC said institutions must meet the gap by the end of the year by raising new capital or restructuring their balance sheets.

But RBS suffered after the report, down three per cent or 8.9p to 277.1p.

Insurer Prudential added to the drag on the FTSE 100, after being hit with a £30m fine for keeping regulators in the dark over plans for a business-changing Asian takeover.

The insurer’s chief executive Tidjane Thiam was also censured after the Financial Services Authority complained it had not been told about the 2010 bid for AIG’s Asian subsidiary AIA in a move worth £23bn. The Pru dropped four per cent, falling 47p to 1051p.

TUI Travel was the biggest riser on the FTSE 100 as its trading update was well received by the market, with shares up four per cent or 12.4p at 322.8p. The firm said it continues to see very strong trading momentum in the UK, with summer bookings up by nine per cent in both weather-hit Britain and the Nordic region.

Vodafone was a big faller, losing some of the premium achieved recently on the back of speculation over a potential £88bn sale of its 45 per cent stake in Verizon Wireless in the US.

Shares were down 1.8p to 186p.