European Central Bank
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European banks may need to raise 200bn euros

European banks may have to raise a collective 200bn euros ($276bn; £175bn) to boost their capital reserves.

The proposal is being made by the European Banking Authority (EBA), which wants the banks to have more funds in reserve to help protect them from any future shocks in the financial markets.

BBC business editor Robert Peston reports.

  • 13 Oct 2011
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