Mizrahi Tefahot sees Tier 1 capital 6.7 pct end 2009

JERUSALEM, June 29 (Reuters) - Mizrahi-Tefahot (MZTF.TA), Israel's fourth largest bank, said on Monday that its upper tier 1 capital ratio will be at least 6.7 percent by the end of 2009.

Israeli regulators have mandated banks to have a total capital adequacy ratio of 12 percent by the end of the year.

Mizrahi-Tefahot's ratio was 11.6 percent at the end of the first quarter and the bank has said it would meet the 12 percent requirement this year.

Tier 1 capital is a bank's core capital, consisting mainly of shares and profits.

To meet the Bank of Israel's 12 percent banks have responded by raising capital.

Mizrahi-Tefahot has raised more than 800 million shekels in Tier II and Upper Tier II capital so far in 2009. ($1 = 3.93 shekels) (Reporting by Steven Scheer; Editing by Jon Loades-Carter)