Europe's Banks Lag In Reaching Required Capital Levels

Law360, New York (September 27, 2012, 3:51 PM EDT) -- Europe's largest banks need to raise €199 billion ($257 billion) to meet increased capital requirements that are set to take effect in January, putting the continent's banking sector behind other regions' financial institutions, the European Banking Authority said Thursday.

The 2010 Basel III international banking accords require the largest global banks to hold up to 7 percent in Tier 1 capital — which is most able to absorb losses — against their risk-weighted assets, but the European Banking Authority found that the biggest banks under its...
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