Spanish banks may need up to 62 billion euros of capital

Reuters News
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Posted: Jun 21, 2012 12:13 PM
Spanish banks may need up to 62 billion euros of capital
MADRID (Reuters) - Spain's banks would need between 51 billion and 62 billion euros ($64-78 billion) in extra capital to weather a serious downturn of the economy and new losses on their books, two independent audits of the sector showed on Thursday.The results of the audit from consultancies Roland Berger and Oliver Wyman will now be used by the Spanish government to determine how much of 100 billion euros of available European funds it needs to recapitalize ailing lenders, and then to formalize an aid request to other euro zone countries.The Bank of Spain said on Thursday the 100 billion euro bailout fund gives a wide margin to correct these capital needs.It said Spain's three biggest banks would not need extra capital in a stressed scenario, noting that the problems are limited to a small group of Spanish banks for which the state has already started to act.Spain's economy ministry said a more detailed audit would come in September. ($1 = 0.7933 euros)(Reporting By Julien Toyer and Nigel Davies; Writing by Tracy Rucinski; Editing by Paul Day)