Banks across Europe must continue with the process of boosting their capital holdings in order to protect themselves against the ongoing eurozone crisis.
The European Banking Authority (EBA) yesterday (3 October) released its final report on its recapitalization exercise for lenders in the European Union and indicated that while advancement has been made, there is still work to be done.
According to these figures, a total of more than €200 billion ($258 billion) was injected into the continent's banking system between December 2011 and June 2012 due to the EBA's requirements.
Meanwhile, the 27 organizations that had an initial shortfall and submitted capital plans have boosted their capital by €116 billion.
The body noted that this has been achieved primarily through banks introducing new capital measures, such as new equity, liability management and retained earnings.
Andrea Enria, chairperson of the EBA, observed: "European banks have made significant progress in boosting their capital positions and in strengthening the overall resilience of the European banking system."
By Tony Aynsley