• Spain approves law on bank capital requirements
• New law is to reinforce solvency of financial sector
• New law demands core capital requirements of Basel III
• Law says state aide funds (FROB) to count towards core capital
• Minimum core capital requirement for listed banks at 8%. For banks with no private investment at 10%
• New round of stress tests likely in June
• Law extends deadline for saving banks to get private investment on board by March 2012
• Thinks bank sector capital shortfall is max 20 bln euros
• Bank sector capital shortfall will become clearer in March