Of Special Interest
7th February 2012
EBA says vast majority of bank capital raising plans OK
The European Banking Authority issued a statement on Monday stating that 'the overwhelming majority' of the plans submitted by the Systemically Important Financial Institutions (SIFI = Too Big To Fail) to ensure they met the new capital requirements were satisfactory and 'in line with the spirit and the letter of the EBA recommendations'. The banks had until January 31st to submit how they would ensure they met the new capital requirements by June 30th this year.
The EBA was prompted to issue the statement following reports in the Financial Times and other media over the weekend that this was not the case and that the EBA was unhappy with many of the submissions. The EBA referred to these stories as 'inaccurate and misleading'. The EBA meets later this week to start the process of formally deciding whether each bank's submission is satisfactory.
Monday saw the announcement of capital raising initiatives by a number of European banks. Some of these are covered in separate articles.