Standard & Poor's: European banks need to attract new capital of 250 billion euros

European banking system will require new capital in the amount of the order of 250 billion euros in the case of "sharp" economic slowdown and a "fast" growth of government bond yields, according to a review of international rating agency Standard & Poor's. The review S & P presents the results of stress tests that take into account three main issues that may arise in the period 2011-2015 - the growth of government bond yields, the tightening market access for the weakest countries and "very severe downturn in the economies of Greece, Ireland, Portugal and Spain. Study of S & P based on tests conducted 99 financial companies, which accounted for 70% of the banking system in Europe. Estimated S & P, 22 out of 99 banks need to attract new capital in the order of 161 billion euros. For the entire banking system of Europe, this figure could reach 200-250 billion euros, experts say. "The consequences of the situation on the stress scenario for the creditworthiness of the Western European countries can be very severe - celebrated in the review. - This will lead to a significant increase in debt of the whole region and jeopardize the stability of their financial positions as well as force the banks to recapitalize. The script, based on which were carried out stress tests did not reflect "the current assessment of the situation in our region," noted in the S & P. Source: Finmarket