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Taxpayers in Bavaria spent double that amount to rebuild capital at the German state's Landesbank.
The retreat comes as Japanese banks prune operations to rebuild capital and profits.
For example, low short-term interest rates redistribute income from depositors to banks, which allows them to rebuild capital and encourages them to lend more.
Since the most recent crisis at the beginning of the 1990s, bumper profits have enabled American banks to rebuild capital during a prolonged bull market (see chart).
"Banks need that money to rebuild capital so they can lend more," said Jaret Seiberg, a financial policy analyst in Washington.
The company said it would sign agreements with Federal bank regulators this week promising to rebuild capital and change lending practices at subsidiary banks.
Similar(40)
They also were paid at the expense of rebuilding capital buffers.
Most retail banks are hoping that they can get away with rebuilding capital further through retained earnings.
That means more selective lending, in order to keep asset growth under control, and the grind of rebuilding capital through retained profits.
Many banks, particularly European ones, have steadfastly kept up their dividend payments throughout the crisis, despite pleas from regulators to cut dividends and concentrate on rebuilding capital levels.
That would allow them to start rebuilding capital, eventually to a level substantially higher than what they were allowed to operate with before the crisis.
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