Bank of Spain has announced the names of 12 banks that would require higher capitals in order to meet the country’s new capital reserve requirements.
It further said that the 12 banks would require a combined total of €15.15 billion (£13.04 billion and $20.94) as additional capital. The Spanish units of Barclays Bank and Deutsche Bank feature among the list of the 12 banks.
Barclays and Deutsche Bank will require additional capitals of €182 million and €552 million respectively, to hit the new 8% core capital mark.
Bank of Spain’s announcement follows the decision by ratings agency Moody’s to downgrade the country’s sovereign debt by one notch to Aa2.
Spain has been facing investor and fellow EU member country pressure to reduce its budget deficit.
The 12 banks have to conform to the new capital requirements by 30 September, Bank of Spain declared.