Europe banks are broadly on track for boosting their capital base to cushion against crises and funds raised exceed the target, the EBA regulator said.
Action to strengthen the banks had focused mainly on raising capital but also on reducing risky assets, the European Banking Authority said.
The measures had not crimped bank lending, it added.
"Although the climate "remains challenging, the recapitalisation has contributed to strengthening the capital base of the banking system and put banks in a stronger position to continue lending," it said.
The EBA, the EU body responsible for certain aspects of banking activity, had reported in December 2011 that 27 banks had a total shortfall of €76 billion in meeting a new requirement that top quality capital amount to 9% of weighted risks being carried. These banks had to meet the new target by the end of June this year.
The EBA initially surveyed 71 banks in the European Economic Area. It found that 37 banks had a total shortfall of €115 billion. But three of these had to undergo major restructuring, a fourth, Spanish Bankia, has since had to be restructured, and six were covered by a programme for restructuring Greek banks
The latest data submitted by banks showed that they "are generally on track to comply with the EBA recommendation," the EBA said.
