The losses announced by the Co-operative Bank in its interim results for the first half of 2013 were anticipated by Prudential Regulation Authority (PRA) and have no impact on the PRA’s assessment that the Co-operative Bank has a capital shortfall of £1.5bn relative to the 7% core equity capital after adjustments. The PRA will hold the Co-operative to the generation of this amount in Common Equity Tier One capital to absorb potential losses over coming years.