Europe’s Banks Must Be Forced to Recapitalize E.U. banks must hold more capital. Where private funding is not forthcoming, recapitalization must be imposed by E.U. governments. Source: The Financial...

Europe’s Banks Must Be Forced to Recapitalize

E.U. banks must hold more capital. Where private funding is not forthcoming, recapitalization

must be imposed by E.U. governments.

Source: The Financial Times , November 24, 2011

What is the “capital” referred to in the news clip?

How might the requirement to hold more capital

make banks safer?

The Bank of Canada (Study Plan 24.3)