FRANKFURT Aug 29 DZ Bank, a central
bank to Germany's cooperative banking network, is confident its
capital base is solid enough to meet regulatory demands, its
chief executive said on Friday.
The lender raised its core capital ratio - a measure of its
ability to withstand financial shocks - to 10.5 percent at the
end of June from 9.2 percent at the end of December. The ratio
will rise to 12.0 percent upon completion of a capital increase
in the third quarter, it said in a statement.
"We therefore see ourselves well equipped for further
regulatory requirements," Chief Executive Wolfgang Kirsch said
in the statement, adding that the bank would continue building
its capital base by retaining earnings in the future.
Europe's lenders are bracing themselves for a review of
their asset quality and stress tests conducted by the European
Central Bank and the European Banking Authority, the results of
which are due in October.
The exercise is a precursor to the ECB taking over
responsibility for banking supervision in the euro zone from
(Reporting by Jonathan Gould; Editing by Christoph Steitz)