S&P’s EU outlook.
mine capital needs, the official said. Banks need larger cushions to help pave the way for eliminating capital controls that were imposed in June, said the official. European leaders’ have pledged to shore up the Greek banking system with 25 billion euros of capital, an amount analysts say should be sufficient. Depositors won’t be called on to help fund the recapitalizations, which are due to be completed by mid-December, nor will levies be imposed on savings, the official said. Existing bank shareholders have expressed interest in participating in the upcoming capital increases, the official said, without elaborating. late 1990s. The Greek commercial bank index – which excludes Bank of Greece – fell close to 30 percent both on Monday and yesterday as investors worried about recapitalization stemming from a flight of euros from deposits. As a central bank, Bank of Greece has no recapitalization needs.
Standard & Poor’s has changed the outlook for the European Union from stable to negative after the bloc’s support for Greece and following Britain’s decision to vote on leaving the EU, S&P reported on Monday. The decision means the US ratings agency could lower its grade of the EU – now at AA+ – in the next two years. “The EU’s repeated use of its balance sheet to provide higher-risk financing to EU member states (most recently including Greece), without the member states’ paying in capital,” was one reason behind the revised outlook, S&P said.