S&P: „Austrian Banks Undercapitalized“

Professional ServicesBanks ♦ Published: September 19, 2011; 13:26 ♦ (Vindobona)

The rating agency Standard & Poor´s (S&P) sees a substantial undercapitalization for Austrian banks. The recommended rist-adjusted capital quota is 8%, Austrian banks are below.

S&P: „Austrian Banks Undercapitalized“ / Picture: © Vindobona.org

“According to our models, Raiffeisen and Erste Group have a relatively weak equity base.”, S&P announces. The risk-adjusted capital for Erste Group is 5.6%, RZB, which holds 75% of Raiffeisen Bank International (RBI), records a quota of 4.1%. Global-acting banks have a risk-adjusted capital quota of 7% to 8%.

“S&P regularly publishes lower quotas, there is no need…