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Big EU Banks Faced $256 Billion Basel III Capital-Gap Last Year

The largest European Union banks would have needed an extra 199 billion euros ($256 billion) in their core reserves had new Basel capital rules been enforced at the end of 2011, the bloc’s top banking regulator said today.

The 44 banks, considered systemically important for the global financial system, would have needed to raise a total of 8 billion euros to meet the bare minimum level of 4.5 percent core tier 1 capital, according to a report on the European Banking Authority’s website. The figure rises to 312 billion euros when taking into account additional surcharges for the biggest banks.