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Capital Needs of Austrian Banks Total € 4bn

Published: November 3, 2011; 15:21 · (Vindobona)

The increase is mainly a result of Erste Group’s third quarter loss, according to OeNB’s Executive Director Andreas Ittner.

Capital Needs of Austrian Banks Total € 4bn / Picture: ©

The capital needs of Austrian banks as of the end of September amount to approximately € 4bn, rather than the € 2.9bn calculated by the European Banking Authority (EBA) based on June’s figures. Andreas Ittner, Executive Director of the Austrian National Bank (OeNB) said that € 4bn were a fair estimate. Main reason for the divergence was Erste Group’s massive quarterly loss, Ittner said without giving further details.

The EBA’s calculations showed capital requirements of € 59m for Erste Group, € 972m for Volksbank Group and € 1.9bn for Raiffeisen Zentralbank (RZB) as of June 2011. The banks are required to establish a buffer such that the Core Tier 1 capital ratio reaches 9%.

At last week’s presentation of Erste Group’s Q3 results, CEO Andreas Treichl said the bank’s capital needs amounted to € 750m at the end of September. At the beginning of this week, RZB’s CEO Walter Rothensteiner announced that the figures calculated for Raiffeisen would not change after the third quarter.

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