Italy, Spain May Feel Bank Plan Most

European policy makers may force banks to boost Tier 1 capital.

Italian, Portuguese and Spanish lenders will bear the brunt of a 100 billion-euro ($139 billion) plan to recapitalize European banks, while their counterparts in the U.K., Germany and France may avoid raising additional funds.

European policy makers, trying to reach agreement before a meeting in Brussels tomorrow on how to tackle the euro zone crisis, may force banks to boost core Tier 1 capital to 9 percent of risk-weighted assets by the end of June, two people with knowledge of the talks said. UniCredit SpA, Italy’s largest bank, Banco Comercial Portugues SA, Portugal’s second-biggest, and Banco Bilbao Vizcaya Argentaria SA, Spain’s No. 2, are among the companies analysts say may have to raise the most capital.

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