The EU Says Europe'S Bank Capital Deficit Is Less Than 100 Billion Euros.

2011/10/20 11:52:00 23

According to the financial times Chinese net, the latest official estimates indicate that Europe is strengthening.

Bank

The ambitious plan of the industry system will be far less than the current market expectations.

The plan confirms that the European banking sector has a capital gap of less than 100 billion euros for the next six to nine months.

Two people who understand the results of the European Banking emergency stress test said they were in charge of stress testing.

European Union

Bank

Administration

(EBA) implies that European banks should finance 70 billion to 90 billion euros.

This will enable the European banking industry to meet the core tier 1 capital ratio requirement of 9% of the eurozone peripheral sovereign debt by market capitalization, which is more stringent than the current capital requirement.

The proposal to establish a government guarantee system for bank bonds is being seen as a key move to thaw the financing market in Europe, but there is a clear standstill on this issue, which will exacerbate fears that Europe is about to break out of the credit crisis.

European leaders will approve the plan this weekend and launch a series of broader initiatives to consolidate the euro zone.

Compared with the European Union's (EU) estimate of the required capital for the restructuring of the banking sector, a recent report by the International Monetary Fund (IMF) confirms that the write down of sovereign debt will lead to a 200 billion euro funding gap in the European Banking balance sheet.

The European Union's estimates are also far from analysts' estimates.

Analysts estimate that the European banking industry has a capital shortfall of up to 275 billion euros.