Saturday, December 10, 2011

Eurozone bank capital shortfall

This chart gives an overview by country of how much capital banks of the euro-zone nations would need to raise to get to 9% capital ratios.


With Greece a lost cause, the number from Spain looks particularly troubling, especially given the economic/market backdrop. It will be next to impossible to raise EUR26 bn of equity capital for Spanish banks from private sources in the near future.  Spanish banks will attempt to sell equity at the same time as other euro-zone institutions will be trying to access the capital markets.
SoberLook.com
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