BERLIN (MNI) – The Austrian National Bank (OeNB) said Friday that
the results of the European stress tests have been “satisfactory” for
the participating Austrian banks.
Under the assumed testing scenario, the tier 1 capital ratio of
Erste Group Bank would decline from an initial 9.2% at end-2009 to 8.0%
at end-2011, that of Raiffeisen Zentralbank from 9.3% to 7.8%, the
central bank said.
“Hence, even in the case of the assumed shock, the tier 1 ratios of
both large banks would be (nearly) twice as high as the minimum
regulatory capital requirements,” the central bank pointed out.
The two banks’ tier 1 ratios would also remain considerably above
the threshold of 6%, which was established for the stress test as the
level at which a bank is considered to have passed the test, the OeNB
remarked.
“Notwithstanding this result…there is a medium-term need for the
European banking landscape as a whole — as well as for the Austrian
banking sector — to strengthen its capital position further, with at
least some of the required funds coming from retained profits,” the
central bank noted.
–Berlin bureau: +49-30-22620580; email: twidder@marketnews.com
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