European banks need to raise 114.7 bn euros: regulator
Europe's banks must raise an extra 114.7 billion euros ($152.5 billion) in new capital to restore stability and confidence in markets, the EU's banking regulator said on Thursday.
The European Banking Authority said in a statement that its final recapitalisation plans were part of "co-ordinated measures to restore confidence in the banking sector" ravaged by the eurozone debt crisis.
The final figure was more than 8.0 billion euros higher compared with the EBA's guidance given two months ago.
"Following completion of the capital exercise conducted in close cooperation with the competent national authority, the EBA has determined that the aggregated shortfall amounts to 114.7 billion euros," it added.
The London-based EU financial regulator said German banks needed to raise 13.1 billion euros, while Italian and French lenders required new capital of 15.4 billion euros and 7.3 billion euros respectively.
The results came on the first day of a crucial EU summit that is aimed at resolving the eurozone's festering sovereign debt crisis.
In October, the EBA had estimated that European banks needed an extra 106.4 billion euros to increase Tier 1 capital ratios to a new requirement of 9.0 percent of assets by June 2012.
© 2011 AFP