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IMF says new capital requirements too small, not fast enough for European banks
BRUSSELS (AP) ' The International Monetary Fund says European banks need to boost their capital buffers more quickly and beyond new minimum levels set to come into force in 2019.
The IMF's demand, made in its World Economic Outlook, comes after bank stocks plunged in recent weeks amid concerns over their exposure to Greece and other struggling countries.
The IMF's assessment clashes with the position of the European Union, which made proposals on how to implement the so-called Basel III rules this summer.
The EU said at the time that banks will need to raise some euro460 billion in capital by 2019 to meet the new minimum levels.
Earlier Tuesday, the EU's competition commissioner warned that more than the nine banks that failed stress tests this summer may need to be recapitalized.