Macroeconomics 11th Edition by Michael Parkin

Exercise 15

Europe's Banks Must Be Forced to Recapitalize
In addition to specifying higher prudential capital ratios, European governments must now bully banks to act immediately. Where private funding is not forthcoming, recapitalization must be imposed, in return for fundamental changes in the way financial institutions operate and burdens are shared.
a. Why do European banks need to hold more capital
b. What exactly is the "capital" referred to in the news clip
c. How might the requirement to hold more capital make banks safer