Finance ministers fail to reach bank deal

EU finance ministers yesterday struggled to reach a deal on forcing banks to set aside more capital to cushion future losses, with Spain saying the bloc had to dispel doubts about the strength of its lenders.

The EU’s 27 members are divided over how much capital banks should hold in future to protect themselves against the kind of losses which have brought down dozens of lenders in Europe and the US, often requiring bailouts funded by taxpayers.

Spain, whose banks have suffered huge losses inflicted by a property crash that is continuing unabated, said new rules were vital for handling future turmoil.