Bank of England's risk watchdog said after its quarterly meeting on March 16 that U.K. banks need to raise capital as soon as convenient to avoid heightening risks from global financial system.

The 11-member financial policy committee (FPC) said banks could raise external capital through cutting dividends and share buybacks.

Next year, the FPC will gain legal power to order banks to take financial measures, at the time it is looking for more powers such as ordering banks to set the apt amount of capital and needed capital requirements in addition to changing banks' overall leverage ratio.