RIA NOVOSTI. Commerzbank AG, the second largest German bank by assets, will sell no later than June 2012 a 14.37% equity stake in Russia’s Promsvyazbank, a Top 30 lender in the Russian Federation, as part of the measures to meet capital requirements of European authorities, the German lending institution said in a press release, RIA Novosti wired.
After a summit held in October 2011 EU authorities ordered regional backbone banks to lift the Tier 1 capital adequacy ratio to 9% by June 30, 2012. To meet this requirement Commerzbank, based on calculations of the European Banking Authority (EBA), will need to inject €5.3 bln into the capital.
Previously the bank said that it would be able to meet European authorities’ capital requirement on its own, mainly by retaining IFRS net profit for 4Q11, and also by buying back hybrid financial instruments.
