European banks have $115bn shortfall
Paris, January 26, 2014
European banks have a combined capital shortfall of about 84 billion euros ($115 billion), German weekly WirtschaftsWoche reported, citing a new study by the Organisation for Economic Co-operation and Development (OECD).
French bank Credit Agricole has the deepest capital shortfall at 31.5 billion euros, while Deutsche Bank and Commerzbank have gaps of 19 billion and 7.7 billion euro respectively, the magazine said.
It was not clear whether the OECD had looked at the listed entity Credit Agricole which is less well-capitalised than its parent, Credit Agricole Group, an unlisted network of co-operative retail banks, which the Bank of France will regulate in terms of solvency ratios.
Although it used a different method of calculating the shortfalls, the OECD said it expected the European Central Bank would come to the same conclusion later this year in its audit and bank stress tests, the magazine quoted the study as saying.
Deutsche Bank said earlier this month its common equity tier 1 capital ratio was 9.7 per cent while its leverage ratio had reached 3.1 per cent as of December 31.
Credit Agricole, which will report fourth-quarter results on February 19, reported a core tier 1 ratio of 9.4 per cent as of September 30, while Commerzbank had a core tier 1 ratio of 12.7 per cent on that date.
Commerzbank is due to report its results on February 13.-Reuters
More INTERNATIONAL NEWS Stories
- Co-pilot said 'all right, good night'
- US, EU impose sanctions on Russians, Ukrainians
- Lost plane 'may have been flown to Taliban territory'
- Lost plane search expands; focus on crew
- US navy seizes Libya rebel oil tanker
- Malaysia police probe flight engineer
- Moscow wins overwhelming Crimea vote
- Syria rebel bastion near Lebanon falls
- Russia 'can turn US to radioactive ash'
- Malaysia formally asks for international help
- MASSACRE: Gunmen kill 100 in central Nigeria
- Tense Crimea votes on Russia referendum
- Libyan port rebels say ready for talks
- India puts on hold search for missing plane
- Alibaba plans US listing in third-quarter
- Lost airliner was diverted deliberately: Malaysian PM
- Saudi demands Qatar shut down Al Jazeera
- Labour stalwart Benn dies aged 88
- Bahrain boat show postponed over development work
- Korean steel maker Posco set for revamp
- Harsh winter hits US consumer sentiment
- Sanctions set as Russia presses on with Crimea takeover
- India inflation at nine-month low
- Missing plane: It's deliberate act says Malaysia PM
- Lost plane 'flown deliberately toward Andamans'
- Gold hits fresh six-month highs
- Iran not open for business, affirms Kerry
- Barclays 'to cut thousands of jobs'
- Jet sent 'pings' after going missing
- China premier warns on economic slowdown