Sovereign debt rule changes threaten EU bank finances
Martin Arnold, Banking Editor
Financial Times
European banks would have to raise up to €170bn of extra capital or sell almost €500bn of sovereign debt if regulators push ahead with plans to break the “doom loop” tying lenders to their governments, according to new research.
Expected changes to regulation could lead to a 30 per cent increase in capital requirements for the main EU banks, according to the research to be published on Wednesday by Fitch, the credit rating agency.
The full article from the FT is available at http://www.ft.com/intl/cms/s/0/d76b51a4-2ccb-11e6-a18d-a96ab29e3c95.html?ftcamp=engage%2Femail%2Fnewsletters%2Fsmart_brief%2Fsmartbriefnewsletterscontrafcf%2Fauddev&segid=0800933#axzz4AykshcsO
