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Capital Shortfall at Austrian Banks Could Decrease

Published: January 24, 2012; 14:05 · (Vindobona)

Possibly Erste Group and Raiffeisen can lower their capital shortfall. The Austrian Financial Market Authority (FMA) is currently talking to EBA.

Capital Shortfall at Austrian Banks Could Decrease / Picture: © FMA Österreichische Finanzmarktaufsicht

Last year, EBA obliged systemic banks from EU-member states to raise their tier-1 capital ratio up to 9.0%. Hence, Erste Group and Raiffeisen have to raise their equity base by € 2.8bn until June 2012. Both banks are convinced to achieve that target in time. Raiffeisen´s shortfall amounts to € 2.1bn, Erste Group must increase equity by € 750m.

The main reason for the high…

This article includes a total of 184 words.

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