Arab Today, arab today eba european banks on target for raising capital
Last Updated : GMT 09:36:53
Arab Today, arab today
Arab Today, arab today

EBA: European banks on target for raising capital

Arab Today, arab today

Arab Today, arab today EBA: European banks on target for raising capital

London - AFP

Leading European banks are broadly on track for boosting their capital base to cushion against crises and the total funds raised exceed the target, the EBA oversight body said on Wednesday. Action to strengthen the banks had focused mainly on raising capital but also on reducing holdings of risky assets, and the measures had not crimped bank lending the European Banking Authority said. \"The measures initially identified have been implemented as planned,\" it said. \"The vast majority of the banks in the sample meet the required ratio of nine percent core tier one (capital).\" Although the climate \"remains very challenging, the recapitalisation has contributed to strengthening the capital base of the banking system and put banks in a stronger position to continue lending to the real economy.\" EBA head Andrea Enria said that work to strengthen the capital base was going to plan and this should \"support lending to the real economy and gradually restore banks\' access to market funding.\" The report said: \"The process of balance sheet repair is, however, on-going.\" The EBA had reported in December 2011 at a particularly critical point in the eurozone crisis, that 27 banks had a total shortfall of 76 billion euros ($93.3 billion) in meeting a new requirement that top quality capital amount to 9.0 percent of weighted risks being carried. These banks had to meet the new target by the end of June this year. The EBA, the EU body responsible for certain aspects of banking activity, initially surveyed 71 banks in the European Economic Area. It found that 37 banks had a total shortfall of 115 billion euros. But three of these had to undergo major restructuring and a fourth, Spanish Bankia, has since had to be restructured, and six were covered by a programme for restructuring Greek banks. The latest data submitted by banks showed that they \"are generally on track to comply with the EBA recommendation,\" the EBA said. But it noted that seven of the 27 banks were \"relying on government backstop measures to reach the 9.0-percent level.\" The preliminary study said that \"the exercise will result in an aggregate 94.4 billion euros recapitalisation for the 27 and in a significant restructuring for the remaining four banks.\" One of these four is Bankia, the subject of a rescue for several Spanish banks agreed by eurozone leaders at the end of June and amended last week, with the money to go directly to the banks so as not to increase national debt. That rescue funding was a key factor in the announcement by the Spanish government on Wednesday of a vast new package of austerity measures totalling 65 billion euros. The EBA recalled that action to raise new capital had to avoid cutting lending to the economy, and said that this had been achieved. The capital action by banks had not cut back lending, it said. \"Overall, EU banks\' new lending levels are driven primarily by credit demand, by banks\' need to de-risk ... by funding shortages, and also by capital constraints.\" On the second prong of the EBA programme, the reduction of risky assets, the report said that banks had disposed of assets worth 90 billion euros or just 1.8 percent of such holdings in September 2011. Much of this had concerned disposal of dollar assets owing to a \"drying up\" of funding in dollars. This concerned mainly \"non-core\" assets by a small number of banks. A European Union Summit had agreed in October last year, that a package of measures including capital increases was needed to reassure investors about the ability of banks to withstand any further shocks. The new rule requires so-called core capital to amount to 9.0 percent of the risks being carried by the bank, subject to a weighting of each category of risk. This is higher than new international rules in response to the financial crisis, known as Basel Three, which require 7.0 percent. Previously, on a different basis, banks had to have a capital ratio of about 5.0 percent. The EBA reached its initial assessment of the strength of bank capital after two rounds of so-called stress tests, but these have been discredited in some circles, and by German Chancellor Angela Merkel, because they excluded risks posed by government debt held by banks. Since then, Spanish banks have been shown to be in a far worse state than was thought and banks have written off huge amounts owed to them by Greece. Cyprus says that this so weakened its banks that it now needs financial help. Government bonds in a number of weak eurozone countries have fallen in value, causing further strains for some banks despite especially easy funding conditions from the European Central Bank on which some banks have become critically reliant. The EBA said that it would issue a final report in September, including details by bank.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today eba european banks on target for raising capital Arab Today, arab today eba european banks on target for raising capital

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today 11 family members dead in rebel push

GMT 07:57 2017 Tuesday ,21 February

11 family members dead in rebel push
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday