Crunch time arrives for European lenders

The 20 January 2012 was a decisive day for Europe’s banks - the deadline for submitting plans of action to raise capital ordered by European regulators.

Of the 31 banks that together were found to have a €115bn capital shortfall in December 2011 stress tests by the European Banking Authority, the worst offenders were Spanish, Italian and German. The EBA will have to judge whether plans drawn up to close those deficits are credible.

ESO: Background information: European banks have €115bn shortfall http://www.europeansources.info/record/european-banks-have-e115bn-shortfall/

EBA: EU-wide stress testing http://www.eba.europa.eu/risk-analysis-and-data/eu-wide-stress-testing

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