Small and medium-sized US banks must raise some $24bn to meet the capital standards set by the government in its stress tests of large institutions, research for the Financial Times shows.
News of the potential capital shortfall could increase pressure on many of the 7,900 US banks that form the backbone of the US financial system.
As many as 500 more banks could close, according to investment bank Sandler Oâ€™Neill, which carried out the research.
So, the bigger banks which hold about two – thirds of the assets in the US banking system need 75 billion dollars and the smaller banks, which hold one – third of the assets need about one – third of that amount. Great research.