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Final report on the fulfilment of the EBA recommendation on banks’ capital

The European Banking Authority has disclosed today the final report on its EU-wide recapitalisation exercise and the data on all individual banks (see EBA press release dated 3 October 2012).

The EBA's recommendation about banks' capital, which was adopted by the Board of Supervisors on 8 December 2011, requested banks to strengthen their capital positions by building up an exceptional and temporary capital buffer, so that the Core Tier 1 ratio reaches a level of 9% by the end of June 2012, after having prudently evaluated sovereign exposures, consistently with their market value as of 30 September 2011.

71 banks across Europe were subject to the capital exercise, including the five largest Italian banking groups (Unicredit, IntesaSanpaolo, Monte dei Paschi di Siena, Banco Popolare and Unione di Banche Italiane).

27 banks with an initial shortfall that submitted capital plans have strengthened their capital position by €116bn. Overall, the exercise led to an increase of banks' capital positions of more than €200bn.