VIENNA Nov 13 BAWAG PSK, the
Austrian bank majority owned by Cerberus Capital Management
, expects to have a capital ratio of at least 9 percent
of risk-weighted assets under Basel III standards by the end of
the year, it said on Wednesday.
BAWAG, one of six Austrian banks to come under direct
supervision of the European Central Bank next year, raised 300
million euros ($403 million) in tier 2 capital last month via a
placement with institutional investors, it said in a statement.
It also sold the last parts of its structured credit
portfolio last month, improving its capital ratios.
The ECB will ask the euro zone's top banks in an upcoming
balance sheet review for an 8 percent capital buffer, sources
familiar with the matter told Reuters last month. This includes
the 7 percent common equity tier 1 (CET1) ratio plus a 1 percent
surcharge for systemically relevant banks.
"We anticipate a fully-loaded Basel III CET I ratio of at
least 9.0 percent by year-end 2013 for BAWAG P.S.K. based on our
current forecast," Chief Executive Byron Haynes said.
A 9 percent CET1 ratio under Basel III equates to a ratio
above 14 percent under Basel 2.5 standards introduced in 2009 as
a stopgap, it said. BAWAG had reported a 12.3 percent ratio
under these rules as of mid-2013.
Basel III roughly triples how much capital banks must hold
compared with before the 2007-09 financial crisis, when many
undercapitalised lenders had to be rescued by taxpayers.
It tells banks to have a core capital buffer equivalent to
at least 7 percent of their risk-weighted assets by January
2019, plus hold separate buffers of cash and government debt to
survive unaided market shocks of up to a month.