Germany's banks will have to find 9.6 billion euros (8.2 billion pounds) to meet a European Union capital target by mid-2012, banking and regulatory sources said on Friday.
The European Banking Authority, sifting the results of a second stress test of 70 banks in the EU, is expected to announce next week the amount of capital each must raise along with guidelines for doing so.
Earlier rough estimates set the total at 106 billion euros. So far, the EBA, which was not immediately available for comment, has stuck to its 9 percent capital target and mid-2012 deadline for achieving it, despite pressure from banks to be more lenient.
Publication of the new requirements will come just ahead of what is seen as a make-or-break EU summit which could finally bring progress in tackling the euro zone's sovereign debt crisis and take some of the pressure off banks.
Meanwhile banks continue to sell off non-core assets to comply with the 9 percent core Tier 1 capital ratio target agreed by EU finance ministers: Royal Bank of Scotland
Banks have been lobbying hard to scale back how much capital they will be required to raise. The industry says it cannot plug large gaps and keep lending to an already ailing economy.
The capital shortfall among five German banks is still above the 5.2 billion expected in October but less than some had feared would be needed if EBA had tightened its capital criteria even further.
Commerzbank alone is expected to need around 5 billion euros, sources close to the bank told Reuters previously although much could hinge on how stringent EBA guidance on the use of hybrid debt to plug capital gaps will be.
Deutsche Bank is expected to need roughly 2.8 billion euros with retained earnings and a modest trimming of assets the likely solution, a source said.
EBA Chairman Andrea Enria had asked that banks submit plans by December 25 to their national regulators, mapping out how they will meet the capital targets.
Germany's private, public and cooperative sector banks wrote a joint letter to Enria asking for more time to submit the plans, suggesting January 13 as a new deadline.
In his written reply to the banks, Enria signalled he was prepared to give banks additional time to submit their plans.
Britain's main banks do not have to raise new capital under the EBA stress test but the Bank of England piled on the pressure on Thursday, saying UK lenders should use every opportunity to raise capital as insurance against a perilous euro zone crisis.
French bank Societe Generale
(Reporting by Alexander Huebner, Writing by Jonathan Gould and Huw Jones; Editing by Sophie Walker)