FRANKFURT/PARIS Jan 25 European banks have a
combined capital shortfall of about 84 billion euros ($115
billion), German weekly WirtschaftsWoche reported, citing a new
study by the Organisation for Economic Cooperation and
French bank Credit Agricole has the deepest
capital shortfall at 31.5 billion euros, while Deutsche Bank
and Commerzbank have gaps of 19 billion and
7.7 billion respectively, the magazine reported in a pre-release
of its Monday publication.
Financial regulators have been pushing banks to hold more
capital to weather potential financial headwinds.
It was not clear whether the OECD had looked at the listed
entity Credit Agricole S.A., which is less well-capitalised than
its parent, Credit Agricole Group, an unlisted network of
cooperative retail banks, which the Bank of France will regulate
in terms of solvency ratios.
Although it used a different method of calculating the
shortfalls, the OECD said it expected the European Central Bank
would come to the same conclusion later this year in its audit
and bank stress tests, the magazine quoted the study as saying.
The OECD and Credit Agricole could not be reached for
comment outside regular business hours. Commerzbank and Deutsche
Bank declined to comment.
Deutsche Bank said earlier this month its common equity tier
1 capital ratio was 9.7 percent while its leverage ratio had
reached 3.1 percent as of Dec. 31.
Credit Agricole, which will report fourth-quarter results on
Feb. 19, reported a core tier 1 ratio of 9.4 percent as of Sept.
30, while Commerzbank had a core tier 1 ratio of 12.7 percent on
Commerzbank is due to report its results on Feb. 13.
($1 = 0.7307 euros)
(Reporting by Harro ten Wolde, Olaf Brenner in Frankfurt and
Leila Abboud, Lionel Laurent in Paris; Editing by Hugh Lawson)