LONDON Dec 14 It may be hard for markets to
absorb debt worth up to 276 billion euros ($293.39 billion)
banks in the European Union must issue to comply with rules
aimed at shielding taxpayers from bailouts, the bloc's banking
watchdog said on Wednesday.
The European Banking Authority (EBA) said regulators will
have to give some lenders enough time, given the strain on
markets from raising such amounts of debt.
The debt is known as MREL and can be written down to
replenish burnt through capital if the lender collapses, thus
avoiding governments picking up the tab like they had to during
the 2007-09 financial crisis.
"Market capacity is uncertain and, at this stage, its
potential evolution cannot be adequately assessed," the EBA said
in a statement.
The watchdog estimated the financing needs of 133 banking
groups at 186 billion euros to 276 billion euros to absorb
losses in a crisis, lower than previous estimates.
(Reporting by Huw Jones, editing by Andrew MacAskill)