Fitch's estimate of $566B in additional capital needs for the world's largest banks is likely to...

|By:, SA News Editor
Fitch's estimate of $566B in additional capital needs for the world's largest banks is likely to create a tradeoff for the lenders. A better capitalization ratio could lead to lower risk premiums, but more capital means ROE will suffer, maybe by more than 20%, thus reducing the bank's ability to attract investment.