EU banks must slash €3.2T in assets for Basel III.

EU banks need to reduce their balance sheets by €3.2T and raise nearly €50B in capital over the next five years in order to comply with Basel III, the FT reports, citing an RBS study. The banks "most in need of fresh capital" are Barclays (BCS), Crédit Agricole (CRARY.PK), and — not surprisingly — Deutsche Bank (DB). Smaller banks will need to cut €2.6T in assets, a prospect that suggests lending to small businesses could dry up.