French Bank Capital Needs âSubstantiallyâ Underestimated, Says German Bank
French Bank Capital Needs âSubstantiallyâ Underestimated, Says German Bank
By Noemie Bisserbe
AP
The estimated total recapitalization requirement for theFrench banking system is "substantially" above the EUR8.8 billion capital shortfallannounced by the EBA, says Deutsche Bank.
It estimates Societe Generale's recapneed stands at EUR6.2 billion versus the EBA's figure of EUR3.3 billion; BNP Paribas EUR2.6 billionversus the EBA's EUR2.1 billion; and Credit Agricole needs EUR2.3 billion versus the EBA's zero.
Deutsche Bank, however, sees these shortfalls "as easily dealt with" throughhybrid debt, scrip dividend and limited asset sales.
"Particularly for SocGen,the EBA announcement reduces uncertainty around the stock and will allow anorderly solution to the capital deficit," it says.
SocGen shares were recently 19%higher, BNP Paribas was up 15% and Credit Agricole was up 20%.
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