After the EU leaders agreed on expanding the buffer for European banks amid the deep debt crisis that risks to derail the financial sectors stability and accordingly global growth.

In line with the agreement to raise capital requirements on banks to 9.0%, European banks need to raise 106.5 billion euros under this recapitalization plan according to the European Banking Authority (EBA).

The EBA said that roughly 70 banks in the 27-EU region must add around 106.5 billion euros to their capital reserves to reflect the decline in debt holdings including Greece and other nations.

The EBA said that Spanish banks need 26.2 billion euros and Italian banks need 14.8 billion. Where combined France, Spain, and Italy need the biggest share of roughly 50 billion euros.

The recapitalization plan comes amid deteriorating debt market conditions and fiscal health of nations, and especially after the leaders agreed on 50% haircut to Greek bonds. The banks were provided with December 25 deadline to present their plans to raise capital and if they need assistance access to the expanded powers of the EFSF will be available after the leaders agreed on a broad plan to increase its firepower to 1.0 trillion euros.

Yet the EBA said that banks that need new capital will be expected to withhold dividends and bonuses and might pursue asset sales and retain earnings rather than go to shareholders for cash.