Home Оффшорные обзоры European banks face the crisis of capital

European banks face the crisis of capital

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Europe's largest banks may have to draw 400 billion pounds in the next two years to implement stricter requirements for capital. It is reported K2Kapital with reference to the Sunday Times.


Large-scale modernization of the international banking regulation, proposed last week by the Basel Committee inspectors global banking system , requires banks to increase cash reserves to prevent future crises.

According to analysts, the new requirements could create a European financial institutions deficit, equivalent to 280 billion pounds. However, sources close to negotiations with the Basel Committee, argue that in reality this amount is much greater.

Estimated Credit Suisse, only British banks will need about 50 billion pounds of additional capital. In order to meet the new regulations, such financial giants as the German Deutsche Bank, Commerzbank and the Spanish BBVA, will begin a massive campaign to raise funds.

Observers believe that the capitalization of many European banks has been inadequate prior to the introduction of new rules