EBA: Banks must maintain capital levels

23 July 2013

European banks must maintain the capital levels they were instructed to reach or reveal how they will top them up, the European Banking Authority (EBA) has said.

The regulator extended the requirements laid out in December 2011 for 61 banks to have a certain amount of capital under them by June 2012.

Institutions all over the European Union managed to raise more than €200 billion ($264 billion) in order to make the deadline, but the EBA wants them to maintain it to help restore investor confidence in the financial sector.

Chair of the EBA Andrea Enria said: "Preserving capital in European banks is essential for maintaining the flow of lending to the real economy."

Banks will be requested to submit their capital plans and monitoring templates to their respective national authorities by 29 November 2013.

The regulator said when national authorities are reviewing capital plans they should "discuss and challenge banks' assumptions and consider the potential impact of stress events".

By Gary Cooper

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