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European banks have 84 billion euro capital shortfall, OECD
estimates: report
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[January 27, 2014]
FRANKFURT / PARIS (Reuters) — 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 Cooperation and
Development (OECD).
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 French bank Credit Agricole <CAGR.PA> has the deepest capital
shortfall at 31.5 billion euros, while Deutsche Bank <DBKGn.DE> and
Commerzbank <CBKG.DE> have gaps of 19 billion and 7.7 billion
respectively, the magazine reported in a pre-release of its Monday
publication.
Financial regulators have been pushing banks to hold more capital to
weather potential financial headwinds.
It was not clear whether the OECD had looked at the listed entity
Credit Agricole S.A., which is less well-capitalized than its
parent, Credit Agricole Group, an unlisted network of cooperative
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.
The OECD and Credit Agricole could not be reached for comment
outside regular business hours. Commerzbank and Deutsche Bank
declined to comment.
Deutsche Bank said earlier this month its common equity tier 1
capital ratio was 9.7 percent while its leverage ratio had reached
3.1 percent as of December 31.
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Credit Agricole, which will report fourth-quarter results on
February 19, reported a core tier 1 ratio of 9.4 percent as of
September 30, while Commerzbank had a core tier 1 ratio of 12.7
percent on that date.
Commerzbank is due to report its results on February 13.
(Reporting by Harro ten Wolde, Olaf
Brenner in Frankfurt and Leila Abboud, Lionel Laurent in Paris;
editing by Hugh Lawson)
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