Consultation not dictat on capital imperils European bank sector

23 Oct 2008

European governments have been accused of not acting aggressively enough in prompting banks to improve their capital ratios, as details emerged this week of further bank recapitalisations across the continent.

While analysts have welcomed the continuing announcements from governments across the region, there are concerns that the benefits of the aggressive stance taken by the UK government with its £37bn recapitalisation of Lloyds TSB, HBOS and RBS are being ignored.

In the past week, France has announced a Eu10.5bn ...

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