European Bank Authority Releases Details Of How European Banks Are Meeting Capital Recommendation

The European Bank Authority, EBA, has released details of how Europe's big banks are performing in meeting the capital recommendation imposed by EBA in December 2011. The big four Swedish banks are well capitalised and already comply with EBA's recommendation.

EBA also announced that the current recommendation will be replaced with a new recommendation on capital conservation once the final CRD4/CRR text is agreed.

On the 26 October 2011 the EU agreed that European banks should increase their capital buffers by summer 2012.  EU's recommendation was that by the 30 of June 2012 Europe's largest banks should have core tier one capital of at least 9 per cent after revaluing sovereign debt holdings.