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Austria watchdog proposes higher risk buffers for big banks 

June 2, 2015

Michael Shields, Reuters

The minimum capital requirements for the biggest Austrian banks will rise by 3 percentage points from mid-2017 to cover systemic risks under plans put forward by the financial watchdog on Monday.

The new standard applies for lenders Erste Group, Raiffeisen Zentralbank and its Raiffeisen Bank International unit, and UniCredit Bank Austria , the Financial Market Stability Board (FMSB) said.

The minimum capital requirements for smaller banks will rise by 1 percentage point from mid-2016, but the banks with the 3 percentage point target can phase them in until mid-2017, the FMSB said on its website.

They come atop the 8 percent common equity tier 1 (CET1) ratios agreed already for major Austrian lenders, it said.

Erste, Raiffeisen and Bank Austria had no immediate comment.

Read more: Reuters

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