IMF sees $287bn capital gap at European banks
Brussels, September 1, 2011
The International Monetary Fund has estimated European banks could face a capital shortfall of 200 billion euros ($287 billion), a European source said.
The figure has prompted a fierce response from European officials who said the analysis was misleading, according to the Financial Times.
The newspaper, citing two officials, said the 200 billion euro figure was one estimate of the impact of marking sovereign bonds to market.
The IMF will publish the analysis in its regular Global Financial Stability Report ahead of the IMF and World Bank fall meetings of global finance leaders in late September. The FT cautioned that the figure was in a draft that could change.
"The IMF vision is biased," Elena Salgado, Spain's finance minister, told the FT, adding that the fund had been mistaken in looking only at potential losses without taking account of holdings of German Bunds, which have risen in price.
IMF managing director Christine Lagarde drew criticism from European policymakers this week after she called for a mandatory recapitalization of European banks. – Reuters
More INTERNATIONAL NEWS Stories
- Missing jet may have strayed to Andaman
- Gold hits near 6-month high
- 2 killed in Manhattan building blast
- Cameron pushes for travel bans on Russian MPs
- Indian coastguards join Malaysia jet search
- Confusion as search for lost jet spreads
- Military denies lost plane's flight to Malacca
- Investors monitoring Pimco after internal strife
- N Korea tanker ‘leaves Libya rebel port carrying oil’
- Malaysia plane incident not terror related: Interpol
- Crimea closes air space to commercial flights
- Missing Malaysian plane last seen At Malacca Strait
- Stolen passport holder on missing plane is Iranian
- China deploys 10 satellites to search for Malaysia jet
- Libya says halts tanker outside port; rebels deny it
- Libya orders military force to 'liberate' ports
- Big bananas: Chiquita, Fyffes merge
- Radar sweeps, dozens of aircraft, but no sign of plane
- N Korea tanker loads oil at Libya rebel port
- Gold drops as US growth optimism weighs
- Merkel raps Putin; Russia tightens grip on Crimea
- World 'at sea' over missing Malaysian jetliner
- Passports requiring probe were on Malaysia flight
- 40 killed in Yemen as Houthi fighters near capital
- Vietnam finds object in sea; search on
- $5bn poll spend to boost India economy
- Libya authorises use of force against Korean tanker
- Ukraine PM says he will go to US to discuss crisis
- Syrian journalist killed covering fighting
- Malaysian jet may have turned back before vanishing