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Austrian regulators confirm Volksbanken equity ratio goal 

May 8, 2014
Michael Shields, Reuters

Austrian regulators have confirmed the minimum 13.6 percent equity ratio target set for the Volksbanken group, the bank said, reiterating it may need "capital measures" at some stage to stay above that level.

Austria became loss-making Volksbanken AG's second-biggest shareholder with a stake of 43 percent in 2012 and has so far ploughed 1.35 billion euros ($1.88 billion) of state aid into the bank to keep it afloat.

It is one of six Austrian lenders due to come under direct supervision of the European Central Bank this year.

The Association of Volksbanks, which comprises the flagship Volksbanken AG (VBAG) and dozens of regional banks that own a majority, had an overall equity ratio of 14.6 percent under Basel III rules at the end of last year.

But it said last month the ratio would inevitably fall in the years ahead as it repays 300 million euros in non-voting capital it acquired from the state and takes a hit from applying Basel III rules. 

Read more: Reuters

 
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