Seeking Alpha

Report: European banks have €84B hole in their finances - OECD

  • European banks have a total capital shortfall of around €84B, the OECD has reportedly calculated.
  • French bank Credit Agricole (CRARF) has the biggest gap with a hole of €31.5B.
  • Of other major banks, Deutsche Bank's shortfall is €19B; in a recent earnings report, the German firm said its Tier 1 capital ratio was 9.7% and its leverage ratio 3.1%.
  • While the OECD uses a different method to calculate banks' capital than the ECB uses, the OECD believes the central bank will come to the same conclusion as the organization has done in stress tests later this year.
Comments (1)
  • DeepValueLover
    , contributor
    Comments (9626) | Send Message
     
    QE for banks.

     

    ECB prints up new money then gives it to the banks to plug the hole.

     

    Problem solved!

     

    </sarcasm>
    26 Jan 2014, 11:33 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs