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Financing Requirements for Building Societies

Published: December 8, 2010; 00:31 · (Vindobona)

According to Basel-III regulations Austrian building societies will require amounts in the hundreds of millions to equip themselves with sufficient equity.

Financing Requirements for Building Societies / Picture: ©

Domestic building societies are facing challenging times. On one hand, large sums have to be earned to meet the Basel-III regulations. The minimum equity ratio is 3%. For the "s-Bausparkasse" of the Erste Group, this would mean an additional demand for capital of € 90m.  This should be achieved within three years by reducing dividend payments to the parent company.

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