Almunia gives nod to state support for EBA capital ratio

24 Jan 2012

The European Commission on Tuesday gave its clearest signal yet that it will be tolerant of banks that resort to government funds to reach the European Banking Authority's 9% core capital ratio, which is required by the end of June.

European competition commissioner Joaquín Almunia said on Tuesday that European authorities would take the bigger picture into account when drawing up restructuring plans with banks that turn to their governments for help.

Almunia said that if a government capital injection was used solely to help a bank meet the EBA requirement — and ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial