In line with international trends towards higher capital requirements for systemically relevant banks and following the introduction of a minimum 9% common equity tier 1 requirement by the European Banking Authority (EBA) in October 2011 as well as the early implementation of Basel 3 in Austria as of 2013, Erste Group and its home supervising regulators, the Austrian National Bank and the Austrian Financial Markets Authority, have entered into a yearly process that – in light of a 9% common equity tier 1 requirement – will likely lead to an increase of Erste Group’s own funds requirement beyond the actual statutory 8% requirement under the Austrian Banking Act, as of 2013, said the bank in a statement.
As at 30 June 2012 Erste Group’s own funds ratio amounted to 14.3% (excluding retained earnings for H1 12). Erste Group expects a new own funds ratio of up to 13% based on the current macroeconomic environment and therefore is already in full compliance with any such increased ratio. A final figure is expected to be determined by year-end 2012.
Erste Group sees the alignment of common equity tier 1 with own funds requirements as a logical step and will continue to comfortably and sustainably meet all capital requirements (EBA, Basel 3, own funds).
In line with international trends towards higher capital requirements for systemically relevant banks and following the introduction of a minimum 9% common equity tier 1 requirement by the European Banking Authority (EBA) in October 2011 as well as the early implementation of Basel 3 in Austria as of 2013, Erste Group and its home supervising regulators, the Austrian National Bank and the Austrian Financial Markets Authority, have entered into a yearly process that – in light of a 9% common equity tier 1 requirement – will likely lead to an increase of Erste Group’s own funds requirement beyond the actual statutory 8% requirement under the Austrian Banking Act, as of 2013, said the bank in a statement.