UPDATE 1-Austria's Volksbanken may need to boost capital
* Part-nationalised bank gets new capital ratio target
* Says evaluating additional capital measures
* Volksbanken due to come under ECB supervision next year (Adds Volksbanken comments, background)
VIENNA, Dec 19 (Reuters) - Austria's partly nationalised Volksbanken AG (VBAG) may need to boost its capital to meet regulatory requirements after losing more than 200 million euros ($273 million) this year, it said on Thursday.
Austria's Financial Market Authority (FMA) has informed Volksbanken in a draft decision that it must meet a total capital ratio of 13.6 percent, the bank said in a statement.
Volksbanken, one of six Austrian lenders due to come under direct European Central Bank supervision next year, said it had a total capital ratio under Basel II standards of 15 percent as of the end of October.
"This ratio will decline in future due to the changeover from Basel II to Basel III, as well as VBAG's loss on a single entity level for the business year 2013, which will likely exceed 200 million euros," it said.
"Additional capital measures are being evaluated in order to meet a possible capital requirement."
A spokesman said getting a 13.6 percent capital ratio would be "a real challenge" although it was not clear whether the target would be calculated under Basel II or the tougher Basel III standards. A decision is due by late January, he said.
The move to ensure Volksbanken's balance sheet is robust comes before big euro zone banks undergo a health check next year led by the ECB.
Volksbanken, of which the state holds 43 percent after a rescue last year, has not ruled out needing more state aid but has dismissed as speculation a report that it might require 1 billion euros in extra support in 2014.
Volksbanken last month forecast losses through 2015 as it carries out a drastic restructuring ordered by the European Commission.
Austria's government has earmarked 5.8 billion euros in aid over the next five years for struggling banks, primarily Hypo Alpe Adria. ($1 = 0.7316 euros) (Reporting by Michael Shields; Editing by Kevin Liffey)
- Malaysia Airlines plane missing at sea off Vietnam, presumed crashed |
- China draws 'red line' on North Korea, says won't allow war on peninsula
- Fresh confrontations raise tempers on ground in Crimea |
- Malaysian plane crashed off Vietnam coast: state media