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financial restructuring

Banks and savings banks are facing a new phase of restructuring the system English financial. From September, the government entities require a larger capital cushions, which will force some banks to attract funding if they want to avoid state intervention. What is the "cushion" of reserves?
The ratio of core capital is the ratio between the funds is entity immediately available and safe (core capital shares, plus other reserves) and the value of its assets considered risky.

The Executive required from September 1 core capital of 8% for publicly traded entities and have exposure to wholesale funding markets less than 20%.

Those that do not meet these requirements, the savings will have to have a core capital of 10%.
This new level is harder than that agreed by central banks in Basel III

. This agreement calls for gradually increasing the core capital from the current 2% to 7% from 2013.
If an entity does not reach minimum required by the Government, the State will enter its capital through the Bank Restructuring Fund (FROB). There will be two years of margin to buy back state involvement. Failure to do so, will be auctioned within five years. How much capital needed? The Bank of Spain has been estimated on Thursday that all the English financial sector 15.152 million
need more capital, reports Juan Emilio Maille.
Savings banks need to 14.077 million, 341 million banks, and other subsidiaries of foreign banks 734 million. Why boxes become banks? More stringent
requires capital savings banks to become listed banks, allowing entry of private capital. La Caixa , for example, has already undertaken this process to transfer its banking assets to Criteria, resulting in Caixabank
, and other groups of boxes, as led by Bancaja and Caja Madrid ( Bankia
), have the first steps to do so in the future. "Caja Madrid

5.775 million really need?

Now yes, but within months not. The Bank of Spain estimated at 5.775 million capital needs Bankia because it has not commenced proceedings to be a bank, so that its core capital requirement is 10%.

No However, if your banking specifically, the 'capital cushion' requirement is 8%, so it 'only' have to get 1,795 million euros. Its current ratio is 7.1%.

What entities are worse? Some boxes

Catalan and Galician, despite its high capital requirements to meet the solvency requirements of the Government, ruled out a bag and value the input of Frob on your capital.

Novacaixagalicia

, merging Caixanova and Caixa Galicia, part with 2,851 million principal and requires an additional 2.622 million more to reach 10% of core capital. His current mattress covers just 5.2%. The Xunta warns that its IPO, "the most likely road map," reduce the need for capital to EUR 1.548 million

. Further complains that Catalunyacaixa of similar size, can capitalize on the FROB 1 between the state without it.

Catalunyacaixa

, born from the merger of Caixa Catalunya, Manresa and Tarragona, part of a fund of 3.148 million, 6.5% of core capital, and need to reach 1.718 million more than the minimum required by the Government. His plans go through .

unanimous

formed by Caixa Girona, Caixa Sabadell, Caixa and Caixa Terrassa Manlleu, dismisses go public despite having 1,150 million capital at this time.

Thus, with a solvency ratio of 6.2%, will have to raise another 568 million more to reach 10%. This group includes several options as to the savings bank "holds the majority of bank capital

" that will form the foundation of the transformation of savings without a majority in the capital of the bank, with input FROB temporary and external investor.

ELMUNDO.ES, Javier González

BASEL

banking will have to increase its reserves for future crises

Core capital that institutions be required to exceed 2% to 7%

States will raise capacity further to the 9.5%

Reform is one of the most important since the financial crisis began