ECB sees €95bn bank capital boost since Q3 2013

By Owen Sanderson
29 May 2014

The European Central Bank said euro area banks have raised more €95bn in capital since Q3 2013 from equity, provisions, contingent convertibles (CoCos) and asset disposals. But it questioned the extent to which attempts to strengthen risk weighted asset (RWA) ratios by shedding assets has actually made banks safer.

Despite this vigorous capital raising, the ECB said average core tier one ratios were down in 2014, thanks to the gradual phasing-in of CRD IV. On a fully loaded Basel III basis, the average crept up a little to 10.4%

In its financial stability report, published on Wednesday, ...

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