FRANKFURT, Aug 29 (Reuters) - 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 November. (Reporting by Jonathan Gould; Editing by Christoph Steitz)