BRUSSELS, Sept 23: European banks have been recapitalised to the tune of 420 billion euros since 2008, the European Commission said on Friday, amid growing calls for lenders to beef up their coffers against the debt crisis.

The funds have come from state bailouts or through market investments since the global financial crisis erupted three years ago, commission spokesman Olivier Bailly told a news briefing.

“The recapitalisation of European banks is underway, it is not something that will take place next week or in the coming months. It is already happening,” Bailly said.

The International Monetary Fund has repeatedly called for a recapitalisation of European banks exposed top the eurozone's unrelenting debt crisis.

After resisting such calls, top European Commission officials this week indicated more banks may need a capital boost in addition to nine lenders that failed a stress test in July.

European Union competition commissioner Joaquin Almunia said he would propose later this year to extend rules that were put in place in 2008 to enable governments to rescue banks, if necessary, beyond this year. But he said banks should first try to finance themselves on the markets.

EU financial services chief Michel Barnier mentioned “16 banks that barely passed the test” that was conducted by the European Banking Authority (EBA), the sector's regulator.

The EBA, however, said on Friday that it had no plans to force weak banks to speed up their recapitalisation.

Banks that failed the test have been given until December to recapitalise.

The EBA has given the 16 other weak banks until April to deliver plans on how to raise their capital reserves.

“They have more time to do this but they are clearly in a fragile situation,” Bailly said.

“We know which banks must be recapitalised. We are talking with them. We are waiting for their plans,” he said. “It is not the whole banking system that's in danger.” —AFP