European Banks Require 400 Billion Euros in Capital, OECD Says

Large banks in the euro area need to raise about 400 billion euros ($519.2 billion) in capital to bring their leverage ratios close to those of peers, according to the Organization for Economic Cooperation and Development.

The lenders need to raise an amount equal to about 4.25 percent of gross domestic product in the euro area to boost core Tier 1 capital to 5 percent of assets, the Paris-based OECD said today in a report. The OECD has recommended a minimum 5 percent ratio of total assets and said that is close to the median leverage ratio of the largest U.S. and European banks.