The European Banking Authority (EBA) today published the result of its final evaluation of banks' compliance with the EBA's recommendation of a 9% Core Tier 1 ratio by the end of June 2012.
As part of co-ordinated European measures designed to restore confidence in the markets, the EBA published in autumn 2011 a plan for the recapitalisation of European banks.
In light of the substantial increase in systemic risk, the EBA recommendation called for major banks to hold a minimum of 9% Core Tier 1 capital by the end of June 2012. In addition, banks were expected to establish capital reserves making full allowance for possible losses on government exposures at market prices in effect at the end of September 2011.
The result of the final evaluation of European banks' compliance with the EBA's recommendation is reviewed in the EBA's press release and report.
As of 30 June 2012 DNB Bank met the EBA's recommendation of a 9% Core Tier 1 ratio.