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German banks need 127 billion euros of more capital: report

German banks need 127 billion euros of more capital: report
Reuters
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FRANKFURT (Reuters) - Germany's 10 biggest banks need 127 billion euros ($175 billion) of additional capital, German newspaper Frankfurt Allgemeine Sonntagszeitung reported, citing a study by economic research institute DIW.

The paper on Sunday cited Dorothea Schaefer, research director for financial markets at DIW, as saying the ratio of banks' equity capital to balance sheet total needs to rise to at least 5 percent.

A source said this month that the International Monetary Fund has estimated European banks overall could face a capital shortfall of 200 billion euros.

(Reporting by Maria Sheahan; Editing by David Hulmes)

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