LONDON (MNI) – European Banking Authority Chairman Andrea Enria has
said that European banks have made significant progress in boosting
their capital positions since December 2011, adding that E200 billion
has now been injected into the banking system.
Europe’s banks are now in better shape to finance the real
economy, he said.
Enria’s comments come as the EBA published its final report on
its recapitalisation exercise for European banks. In December 2011 the
EBA recommended that EU banks raise their capital buffers in order to
restore stability and confidence in the markets.
“Banks are now in a better shape to finance the real economy but
must continue on the path designed by the new regulatory environment,”
he added.
The EBA also said that banks’ capital strengthening has been
achieved mainly via new capital measures such as retained earnings, new
equity and liability management.
The EBA said that capital strengthening hasn’t led directly to a
significant reduction in lending into the real economy.
–London Bureau; Tel: +442078627492; email:
wwilkes@marketnews.com/dthomas@marketnews.com
[TOPICS: M$X$$$,MGX$$$]
