EU banks fail to convince regulators of real-economy impact of capital hikes

15 November 2019 10:41pm
EU banks are set to see a sharp rise in capital requirements as global norms correct a supposedly overoptimistic assessment of risk. They are going to have a hard time persuading regulators that this creates a risk of an economic slowdown.

The extra 135 billion euros ($149 billion) in capital which the sector could need to raise by 2026 will hit a sector that is already struggling to turn a profit — but there is scant evidence it will damage the real economy.