European banks in further capital calls

Two European banks, Commerzbank and Intesa Sanpaolo, announced plans to raise a combined €13.25bn of fresh equity on the 6 April 2011, taking to nearly €25bn the total capital raisings unveiled since the start of 2011 by institutions across the continent.

The moves came as European regulators embarked on a process to stress test the financial strength of about 90 of the region’s biggest banks, with the results set to be published in June 2011. Analysts and bankers expected several more banks, such as Raiffeisen, to come to the markedet for fresh equity in the following weeks.

ESO: Background information: Deadline set for EU countries’ failing banks plan http://www.europeansources.info/record/deadline-set-for-eu-countries-failing-banks-plan/

EBA: Press Release, 18.3.11: The EBA publishes details of its stress test scenarios and methodology http://www.eba.europa.eu/News--Communications/Year/2011/The-EBA-publishes-details-of-its-stress-test-scena.aspx

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