EU has no plans to speed up bank recapitalisation: regulator

23rd September 2011, Comments 0 comments

The European Union's financial sector regulator said on Friday that it had no plans to force weak banks to speed up their recapitalisation plans despite a worsening debt crisis.

"At this point and time, there are no changes in the timeline that is already stated in the July recommendation," a spokeswoman for the European Banking Authority told AFP.

"The EBA is monitoring closely the situation on the markets," she added.

EU financial services commissioner Michel Barnier has called for a swift recapitalisation of 16 banks which he said came close to failing EBA stress tests, the results of which were published in July.

The EBA has given the weak banks until April to deliver plans on how to raise their capital reserves. It has meanwhile given the eight banks who failed the tests until December this year to do so.

Lenders are expected to seek investment on private markets but there are increasing suggestions that state aid may be needed.

© 2011 AFP

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