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Spanish banks to get 28 billion euros capital boost from state: sources

MADRID (Reuters) - Spain will give its banks a 28-billion-euro capital boost by allowing them to transform so-called deferred tax assets into tax credits backed by the state and count them as core capital under new Basel III rules, five sources said on Wednesday. The measure, seen by analysts as a key element to determine whether Spanish banks will pass or fail a Europe-wide stress test next year, has already received the backing of the European Central Bank and will be made official in November, the official and banking sources said.

ECB to ask euro zone banks for eight percent capital buffer: sources

FRANKFURT (Reuters) - The European Central Bank will ask the euro zone's top banks in its upcoming balance sheet review for an 8 percent capital buffer, two sources familiar with the matter told Reuters. The capital buffer could have been higher, but may still prove a challenge to some banks as they reshuffle their balance sheets to make them crisis-proof.

Strong Swedbank lending income eases fears of Nordic squeeze

By Simon Johnson and Oskar von Bahr STOCKHOLM (Reuters) - Growth in core lending activities at Swedbank <SWEDa.ST> eased worries about profitability at Nordic banks in the third quarter, sending shares across the sector higher on Tuesday. Nordic banks have weathered the crisis of the last five years well. Growth is outpacing the rest of Europe, low rates have kept credit losses muted - outside Denmark and the shipping sector - and strong capital buffers mean low funding costs relative to other lenders.

Denmark toughens capital requirements for banks

By Teis Jensen COPENHAGEN (Reuters) - Denmark is to raise capital requirements over a five-year period for seven of the country's lenders, including the country's biggest bank Danske Bank <DANSKE.CO>, joining global efforts to boost the sector's stability. "It is pivotal that we strengthen the banks' robustness so we can resist future crises," Minister for Business and Growth Henrik Sass Larsen said in a statement.

KDIC only recoups 7 pct of bad project financing loans: data

SEOUL, Oct. 10 (Yonhap) -- The state-run debt clearer has only recouped 7 percent of soured debts from project financing loans, largely due to the massive bankruptcies of local savings banks amid the protracted slump in the property market, data showed Thursday. The Korea Deposit Insurance Corp. (KDIC) retrieved 298.9 billion won (US$277.7 million), or 6.9 percent of 4.32 trillion won worth of bad loans it bought between 2007 and July this year from infrastructure and industrial projects that defaulted, according to KDIC documents submitted to parliament.

Big banks closer to meeting new capital rules

Large banks are making progress toward meeting their capital requirements under Basel III, the banking reforms imposed in a bid to avoid a repeat of the 2008 global financial crisis, a study found Wednesday. The Basel Committee, which monitors lenders' progress on the new rules, said that at the end of last year the 101 big international banks in its study were 115 billion euros ($155 billion) short of their targeted capital cushion.

Top banks have $155 billion capital shortfall, most in Europe

By Huw Jones LONDON (Reuters) - The world's biggest banks would need to boost their capital by 115 billion euros ($155 billion) to comply with tougher rules and more than 60 percent of that shortfall is in Europe, where lenders have been slower to strengthen. The capital shortfall fell by 83 billion euros during the second half of last year as banks retained more of their profits and raised capital, although the pace of improvement was not as quick in Europe as elsewhere.

Top EU banks have Basel capital shortfall of 70 billion euros

By Huw Jones LONDON (Reuters) - The top 42 banks in the European Union would need an extra 70.4 billion euros ($95 billion) of capital to comply with new rules that take full effect in 2019, the bloc's banking watchdog said on Wednesday. Markets and regulators have been putting pressure on banks to move early to comply with the new global Basel III accord being phased in, to dispel any doubts about their ability to thrive and encourage investors to buy their bonds and shares.

Next bank stress test cycle to include Basel III: U.S. Fed

WASHINGTON (Reuters) - U.S. banks must incorporate the strict new Basel III capital rules in the next set of the surveys of their financial health known as stress tests, the Federal Reserve said on Tuesday. The central bank has adopted two so-called interim final rules, one for bank holding companies with $50 billion or more in total consolidated assets, and a second for groups with assets of $10 billion to $50 billion.

Smaller dividends help drive bank capital rise, not loan cuts: BIS

LONDON (Reuters) - A rise in capital levels across banks in recent years has been mainly due to them holding onto earnings and cutting dividends, rather than slashing lending, the global organization for central banks said on Sunday. Regulators have forced banks to bolster capital because of the 2007/09 financial crisis so they are better able to absorb losses and avoid any need to be rescued by taxpayers.
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