EBA Publishes Final Report on Recapitalization of European Banks

The European Banking Authority has published the final results of its EU-wide recapitalization exercise, including data on all individual banks. Although the exercise resulted in an increase of more than €200 billion in banks’ capital positions, the EBA stressed that the market environment remains challenging, and announced that it will be issuing a new recommendation for banks to maintain an absolute amount of CT1 capital equivalent to the level of 9% Core Tier One ratio at the end of June 2012.

Banks will also be required to set out their plans to ensure compliance with the upcoming Capital Requirements Directive and Regulation.