Europes Banks Must Be Forced to Recapitalize E.U. banks must hold more capital. Where private funding is

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Europe’s Banks Must Be Forced to Recapitalize E.U. banks must hold more capital. Where private funding is not forthcoming, recapitalization must be imposed by E.U. governments.

Source: The Financial Times, November 24, 2011 What is the “capital” referred to in the news clip?

How might the requirement to hold more capital make banks safer?

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Macroeconomics

ISBN: 125367

12th Global Edition

Authors: Michael Parkin

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