Banks across Europe are making strides towards complying with new capital regulations, it has emerged.
A new report released by the European Banking Authority (EBA) yesterday (11 July) revealed that the majority of financiers sampled are now in line with the required tier 1 capital ratio of nine per cent.
Last December, the EBA revealed that 27 major continental lenders were maintaining a capital shortfall of €76 billion ($92 billion), but these companies have now managed to reverse this figure to an aggregate recapitalization of €94.4 billion.
And the body stated this is a clear indication that despite the continuing challenging market conditions, banks are becoming increasingly resilient as measures to improve their business practices take effect.
Andrea Enria, chairperson of the EBA, said this offers proof the organization's plan to fortify the capital base of financiers is "proceeding to plan".
"European banks are now in a stronger position, which should support lending to the real economy and gradually restore banks’ access to market funding," she added.
By Gary Cooper