Bronfman to present Discount Bank cap adequacy plan

JERUSALEM, July 7 (Reuters) - The Bronfman Group, which controls Israel Discount Bank (DSCT.TA), said on Tuesday it will present a plan by the end of the month detailing how the bank would meet regulators' demands on its capital adequacy requirement.

U.S.-Canadian businessman Matthew Bronfman and Rubin Schron run the group that bought a combined 26 percent stake in Discount -- Israel's third largest bank -- in early 2006.

A group spokesman said in a statement that it was looking into a strategy where the bank could raise its capital to risk assets ratio to a required 12 percent by the end of 2009.

It was 10.42 percent in the first quarter and analysts have questioned the bank's ability to meet the 12 percent the Bank of Israel has demanded so that banks have a cushion during the financial crisis even though Israeli lenders have not been hurt as much as U.S. and American peers.

The spokesman noted that Bronfman sees Discount as a long-term investment and that the group plans to continue investing in the development of the bank.

Leumi (LUMI.TA), Israel's largest bank, reported a capital adequacy ratio of 11.9 percent in the first quarter.

Rival Hapoalim (POLI.TA), the country's second largest, had a ratio of 11.27 percent at the end of March but in June the bank sold 3.3 billion shekels ($842 million) in a number of offerings of capital notes to the public and institutional investors to raise the ratio.

($1 = 3.92 shekels)

(Reporting by Steven Scheer)