Business

Portugal sees 3 banks needing extra capital

Portugal's central bank says three of the bailed-out country's four largest banks will likely need state aid to meet new capital requirements.
A Portugese bank manager looks through the window where eggs hit during an anti-austerity demonstration in Lisbon in March. On Tuesday, the government said three banks might need state aid. (Patricia de Melo Moreira/AFP/Getty )

Portugal's central bank says three of the bailed-out country's four largest banks will likely need state aid to meet new capital requirements.

European banks are required by law to shore up their reserve cushion of high-quality capital, known as core tier 1, to 9 per cent by the end of June.

The measure aims to strengthen lenders against financial market uncertainty amid the continent's debt crisis.

The Bank of Portugal said in a report Tuesday it expects three Portuguese banks to tap a C12 billion ($15 billion) fund to support capital increases, though it did not say by how much.

It did not name the lenders, but Banco Comercial Portugues, Banco Portugues do Investimento and Banif have previously said they may need help.