PRAGUE, Oct 31 (Reuters) - Czech banks will need to boost capital or eligible liabilities by 120 billion to 140 billion crowns ($5.3 billion-$6.1 billion) in the coming four years to meet new banking rules, the Czech National Bank said on Wednesday.
The minimum requirement for own funds and eligible liabilities, known as MREL, is meant to increase banks’ ability to handle potential crises.
The central bank said it would set MREL requirement for each bank individually, starting next year. The banks could raise capital or issue bonds or other instruments, it said.
Czech banks were largely unscathed in the global financial crisis that started a decade ago, doing better than their western parent groups.
The Czech National Bank regularly performs stress testing of the banking sector, with the latest in June showing lenders were resilient to potential shocks.
$1 = 22.8560 Czech crowns Reporting by Robert Muller Editing by Edmund Blair