The EBA details the EU measures to restore confidence in the banking sector
The European Banking Authority (EBA) supports the agreement at EU level on measures to restore confidence in the banking sector. These measures form part of a broader package aimed at addressing the current situation in the EU by restoring stability and confidence in the markets. Their implementation is conditional on the other components of the package being fully clarified and endorsed.
The EBA's contribution to the overall package focuses on the capital and term funding needs in the EU banking sector against the backdrop of the increasing concerns regarding sovereign debt.
Term funding guarantee scheme
Notwithstanding the European Central Bank's (ECB) support for banks short term funding needs, additional steps are required to restart the term unsecured funding market. This would help banks to continue their lending activities in 2012 and to avoid a spiral of forced deleveraging and the ensuing credit crunches, which would affect the real economy.
Banks will be required, by the end of 2011, to submit to their respective national authorities their plans detailing the actions they intend to take to reach the set targets. These plans will have to be agreed with National Supervisory Authorities and discussed with the EBA. The targets will have to be achieved avoiding excessive deleveraging, so as to contain the potential impact on the real economy. To reach the targets, banks will be expected to withhold dividends and bonuses.
Country
|
Estimated target capital buffer
|
Sovereign capital buffer*
|
AT (1)
|
2,938
|
224
|
BE (2)
|
4,143
|
5,634
|
CY
|
3,587
|
3,085
|
DE
|
5,184
|
7,687
|
DK
|
47
|
35
|
ES
|
26,161
|
6,290
|
FI
|
0
|
3
|
FR
|
8,844
|
3,550
|
GB
|
0
|
0
|
GR (3)
|
30,000
|
/
|
HU
|
0
|
43
|
IE
|
0
|
25
|
IT
|
14,771
|
9,491
|
LU
|
0
|
0
|
MT
|
0
|
0
|
NL
|
0
|
99
|
NO (4)
|
1,312
|
0
|
PT
|
7,804
|
4,432
|
SE
|
1,359
|
4
|
Sl
|
297
|
20
|
Total
|
106,447
|
|
amounts are in million Euros
|
|
|
* The sovereign capital buffer is indicative and can already be covered by existing CT1 capital if the CT1 ratio exceeds 9%.
|
Documents
Question & Answers
(365.55 KB - PDF) Last update 25 October 2011
Methodological note
(328.57 KB - PDF) Last update 25 October 2011
Press contacts
Franca Rosa Congiu