EU banks must drop €3.2T in assets for Basel III

EU banks must drop €3.2T in assets for Basel III

  • EU banks will need to reduce their balance sheets by €3.2T and raise nearly €50B in capital over the next five years in order to comply with Basel III, FT says, citing an RBS study.
  • The banks flagged as the "most in need of fresh capital" are Barclays (BCS), Crédit Agricole (CRARY.PK), and — not surprisingly — Deutsche Bank (DB).
  • Smaller banks will need to cut €2.6T in assets, a prospect which suggests lending to small businesses could dry up.
  • More: Deutsche to shed assets, FDIC vice chair says bank is undercapitalized.
  • Even more: Barclays to bridge capital shortfall with rights issue, CoCos.
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