PARIS (MNI) – France’s four leading banks need to raise a total of
E7.3 billion in additional capital in order to meet the core tier 1
target ratio of 9% by next June, the European Banking Authority
estimated Thursday.
The shortfall is less than the preliminary estimate of E8.8
billion, “due in particular to positive earnings recorded in the third
quarter of 2011 by the four banks,” the Bank of France said in
presenting the results.
BoF Governor Christian Noyer, also chairman of the French
Prudential Supervisory Authority, “welcomed these good results and
recalled that the increase in bank capital would not involve any
government support,” the central bank said in a press release.
A breakdown for the four banks, which represent over 80% of the
French banking sector, showed that BNP Paribas needs to raise E1.5
billion, enough to assure a buffer for exposure to sovereign debt of
E2.5 billion.
The BPCE group needs an additional E3.7 billion, including a
sovereign exposure of E1 billion. Societe Generale needs E2.1 billion
of additional capital. The Credit Agricole Group already has a core tier
ratio of 9.23%. The latter two have no need for addition coverage of
sovereign exposure.
[TOPICS: M$F$$$,M$$CR$,M$X$$$,M$$EC$]
