Europe’s banks are being told to increase their capital by a total of 114.7 billion euros, more than predicted two months ago, to make sure they are strong enough to withstand the euro zone debt crisis, two financial sources told Reuters on Thursday.

The industry’s capital shortfall is almost 8 percent higher than the 106.4 billion euros estimated in October due to increases for banks in Germany, Italy, Austria and Belgium, the sources said.

The European Banking Authority (EBA), which is due to release the data later on Thursday, was not immediately available to comment.

The shortfall after including a sovereign capital buffer is 13.1 billion euros for German banks, up from 5.2 billion estimated in October, the sources said.

Banks in France will need 7.3 billion euros, banks in Spain will need 26.2 billion euros and banks in Italy will need 15.4 billion euros, the sources said.

The banks have time until January 20 to present their plans for recapitalization and need to fulfill the capital requirements by end-June, they said.

The EBA’s recapitalization plan is part of a three-pronged approach — also dealing with sovereign debt exposures and improving funding guarantees — that it hopes will restore confidence without crimping lending in a fragile economy.

($1 = 0.7468 euros)

Source: Reuters/Edward Taylor and Philipp Halstrick