The EU banking regulator said Monday that it was "impressed" with the willingness of European banks to meet new recapitalisation demands, ahead of a progress update due this week. The London-based European Banking Authority (EBA) ruled in December that the region's banks needed to raise an extra 114.7 billion euros ($152.5 billion) in new capital to restore stability and confidence in the markets.
"The EBA is still undertaking its review of the banks' plans. Whilst it is too early to comment on the feasibility of those plans, the EBA has been impressed with the banks' willingness to undertake all appropriate measures to meet the requirements set out in the EBA's recommendation," a statement said.
"These measures will strengthen the resilience of the EU banking sector. They form part of a broader package agreed at the EU level to address the current situation by restoring stability and confidence in the markets. "The EBA intends to provide factual information on the progress of the exercise after the meeting of the board of supervisors on 8-9 February." The Financial Times on Monday reported that the EBA would challenge a "significant proportion" of the capital restructuring plans put forward by leading European banks.
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