European banks face pressure to issue far more shares in order to meet a tough new global regulatory framework outlined at the weekend by finance ministers of the G20 group of nations which calls for much bigger and better capital buffers against shocks, analysts warned yesterday.
The move follows criticism that some banks have relied too heavily on complex securities which have proved poor defences against big losses.
Some banks have met up to more than half the existing regulatory requirements on capital buffers through the issuance of “hybrid” securities which are more like debt than equity, according to analysts.
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