European officials look set to speed up plans to recapitalise the 16 banks that came close to failing last summer’s pan-EU stress tests as part of a co-ordinated effort to reassure the markets about the strength of the 27-nation bloc’s banking sector.
A senior French official said the 16 banks regarded as close to the threshold would have to seek new funds immediately. Although there has been widespread speculation that French banks are seeking more capital, none is on the list. Other European officials said discussions were still under way.
The move would affect mostly mid-tier banks. Seven are Spanish; there are two apiece from Germany, Greece and Portugal; while Italy, Cyprus and Slovenia have one each. The list includes Germany’s HSH Nordbank and Banco Popolare of Italy.