How much capital do European banks need? Some estimates

The lack of market confidence in European banks is fed by the uncertainty about Eurozone sovereign debt. This column argues governments and banking supervisors should agree a recapitalisation package well before Christmas. It adds that the required amount to be raised by each bank should be presented as a euro amount and not as a ratio so as not to tempt banks to cut down assets instead of raising capital.

Steffen, Sascha, Viral V. Acharya and Dirk Schoenmaker (2011), How much capital do European banks need? Some estimates,