EU bank recap 'to be less than €100bn'

20 October 2011

Banks across Europe are set to receive less than €100 billion (£87 billion) in order to revamp the continent's financial system, it has been suggested.

According to a report in the Financial Times today (20 October), the European Banking Authority - which was established last November to supersede the Committee of European Banking Supervisors - believes around €80 billion needs to be raised in the near future.

This figure - which is expected to be put together in the next six to nine months - is significantly less than the capital deficit of as much as €275 billion estimated by some experts.

However, the news source indicated that this plan will be ratified over the coming days as well as a further wide range of measures to help strengthen the ailing eurozone.

For instance, a policy that will facilitate the European financial stability system to guarantee sovereign debt issuance from governments is thought to be on the cards.

By Tony Aynsley

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