Good news from the Authority that supervises European banks. The president of the EBA, Andrea Enria, said he was satisfied with the plans presented by the banks of the European Union to increase their capital by 115 billion euros by the end of June. "They are consistent with EBA expectations," the president said. “I can say that, overall, we are satisfied with the plans of the banks which detail how they intend to achieve their objectives”.
The EBA has given banks until the end of June to increase their core capital to 9% as part of efforts to restore confidence in the industry. Until that goal is met, Enria explained, there's no reason to run another round of stress tests.
The latest stress tests had been criticized for failing to see the problems of the banking sector in Spain, which will need a European aid package of up to 100 billion euros.
The EBA president then added that a final report will be developed during the month of September while the next stress tests will be performed in 2013.
