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Top Banks Have 115 Billion Euro Capital Shortfall, Most In Europe

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http://uk.reuters.com/article/2013/09/25/uk-banks-capital-global-idUKBRE98O0CY20130925

The world's biggest banks would need to boost their capital by 115 billion euros ($155 billion) to comply with tougher rules and more than 60 percent of that shortfall is in Europe, where lenders have been slower to strengthen.

The capital shortfall fell by 83 billion euros during the second half of last year as banks retained more of their profits and raised capital, although the pace of improvement was not as quick in Europe as elsewhere.

The Basel Committee of global regulators said on Wednesday the shortfall at top international banks was based on a target to hold a minimum core capital level of 7 percent, plus capital surcharges required for the biggest banks. Its finding was based on their balance sheets at the end of last year.

I'm sure the taxpayer will be more than happy to help out.

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So the banks are 115bn short measured against rules that come into effect in 2019 and they have reduced that shortfall by 83 bn in the last six months. So carrying on at that rate they would take maybe 9 months to be on side of rules that take effect in 5-6 years. Am I reading that right?

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Of course we will - pleasure.

There will be a bit extra coming in from the BTL brigade via rate rises, perhaps residential rate rises too - but in reality, where is that amount of money going to come from?

This refers to banks globally. The capital level will be reached through a combination of retained dividends, rights issues, and deleveraging. Over several years it should be achievable for most banks. But the weakest will have trouble and may need restructuring and possibly bail in

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This refers to banks globally. The capital level will be reached through a combination of retained dividends, rights issues, and deleveraging. Over several years it should be achievable for most banks. But the weakest will have trouble and may need restructuring and possibly bail in

Thanks Ah-so

Do you know what % of the weakest are UK banks? Is it achievable really?

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This refers to banks globally. The capital level will be reached through a combination of retained dividends, rights issues, and deleveraging. Over several years it should be achievable for most banks. But the weakest will have trouble and may need restructuring and possibly bail in

So bonus's and compensation will not be sacrificed to protect those being bailed in? What a surprise that is. :lol:

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