SocGen says lifted leverage ratio in July, August
PARIS, Sept 9
PARIS, Sept 9 (Reuters) - French bank Societe Generale said on Monday it had lifted its leverage ratio under Basel III rules by around 0.1 percentage points in July and August, after it sold securities to top up solvency.
France's No. 2 listed lender said in a statement that the sale of toxic debt assets left over from the last crisis, the issuance of new Tier 1 hybrid debt securities and the sale of shares to employees had all contributed to the increase to a leverage ratio of 3.3 percent since the end of June.
"The combined effect of these elements on the Basel III leverage ratio is estimated at around plus 10 basis points," the bank said.
SocGen said its leverage-ratio calculation was based on the bank's application of European "CRD4" rules as of June 26.
Global regulators meeting in the Swiss city of Basel in June surprised banks with a new focus on leverage to measure risk, prompting banks holding large amounts of financial derivatives such as Barclays and Deutsche Bank to either tap investors for more equity or make plans for asset sales. (Reporting by Lionel Laurent; Editing by David Cowell)
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