Europe banking giants reveal recapitalization costs

Major European banks have revealed approximate costs of their proposed recapitalization under new European requirements, introduced to secure banks if the debt crisis worsens. Leaders of EU countries who gathered for an emergency summit in Brussels earlier this week set June 30 as a deadline for major EU banks to accumulate 9 percent in core reserves after sovereign debt writedowns. According to EBA estimates, banks will need to accumulate more than 106 billion euro ($150 billion) to meet the target. The move is designed to enhance the stability of the region\'s banking system and will help it to stay afloat if financial situation worsens significantly, including a possible default of a troubled euro zone country. According to EBA estimates, banks of Greece will require 30 billion euro ($42.4 billion), Spanish banks - 26.2 billion euro ($37 billion), Italian banks - 14.8 billion euro ($21 billion), French banks - 8.8 billion euro ($12.5 billion). German lenders will have to amass 5.2 billion euro ($7.4 billion) and banks in the United Kingdom will need no funds at all. Banks said on their website they plan to seek state support only as a last resort, and will try to raise the funds on the market. Spain\'s largest bank Santander will require almost 15 billion euro ($21.2 billion), while BBVA will have to raise funds of 7.1 billion euro ($10 billion). France\'s three largest banks - BNP Paribas, Societe Generale and BPCE Group will need 8.8 billion euro ($12.5 billion) in total. Though Italy\'s major lender Intesa Sanpaolo will not require to raise capital, other major banks - Unicredit and the world\'s oldest bank Monte dei Paschi di Siena will need 7.4 billion euro ($10.5 billion) and 3.1 billion euro ($4.4 billion), respectively. Germany\'s largest bank, Deutsche Bank, will require 1.2 billion euro ($1.7 billion) and said it had no plans to seek aid from the government. Another lender, Commerzbank, will require almost 3 billion euro ($4.2 billion) for recapitalization. Austria\'s Raiffeisen will need 1.9 billion euro ($2.7 billion) to meet new requirements.