EBA says European banks need to raise 114.7bn euros: report

8th December 2011, Comments 0 comments

The European Banking Authority has concluded that European banks need to raise an extra 114.7 billion euros ($152.5 billion) in new capital to withstand future financial shocks, a report said Thursday.

The result of banking stress tests from the EU's London-based financial regulator, as reported by Bloomberg financial newswire, came on the first day of a crucial EU summit that is aimed at resolving the eurozone debt crisis.

Bloomberg also reported that banks in Germany needed to raise a total of 13.1 billion euros in fresh capital, while Italian and French lenders were required to raise 15.4 billion euros and 7.3 billion euros respectively.

The numbers were reported before the EBA watchdog was due to declare the official outcome of its EU-wide stress tests at 1700 GMT.

The total capital estimate was more than 8.0 billion euros higher than the previous guidance given two months ago.

In October, the EBA had estimated that European banks needed an extra 106.4 billion euros in order for them to increase their so-called core Tier 1 capital ratio to a new requirement of 9.0 percent of assets by June 2012.

© 2011 AFP

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