LISBON (MNI) – The Bank of Portugal, in keeping with conditions
attached to a proposed E78 billion bailout package for Lisbon, said
today it is formally requiring stricter capital ratios for Portuguese
banks.
As envisioned in the EU-IMF bailout plan for Portugal, banks will
need to have core tier 1 ratios of no less than 9% by the end of this
year and 10% by the end of December 2012.
“Based on the risk profile of each banking group and taking into
consideration the results of the solvency evaluations and deleveraging
to occur in the context of the program, the new regulation provides for
the Bank of Portugal on occasion to be even more demanding in terms of
the minimum levels of the core tier 1 ratios,” the bank said.
Portuguese banks have until the end of June to submit to the Bank
of Portugal their respective capitalization plans, “which should show
how they propose to meet the new capital requirements,” the central bank
said.
–Paris newsroom, +331-42-71-55-40; bwolfson@marketnews.com
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