Oct. 12 (Bloomberg) -- German Finance Minister Wolfgang Schaeuble said that European Union states will have to recapitalize banks that can’t raise sufficient funds in markets.
“We must ensure that all systemically-important European banks are equipped with sufficient capital so that the sovereign debt crisis of some countries doesn’t trigger a collapse of the entire banking system by means of contagion,” Schaeuble said today in remarks made in Berlin.
Banks have to “decide themselves if they can get the necessary capital in the market and whenever they can’t, the states will get it for them,” he said.
“Countries that are not able to take measures for their systemically-important banks can receive support from the financing facility under simplified conditions.”
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