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ECB lowers capital requirements for Commerzbank
December 13, 2016 / 8:08 AM / 8 months ago

ECB lowers capital requirements for Commerzbank

The logo of the European Central Bank (ECB) is pictured in the lobby of its headquarters in Frankfurt, Germany, January 19, 2016.Kai Pfaffenbach

FRANKFURT (Reuters) - Europe's banking regulator has lowered the individual capital requirements for Commerzbank (CBKG.DE) for next year, Germany's second-largest lender said in a statement on Tuesday.

According to the European Central Bank's Supervisory Review and Evaluation Process (SREP), which looks at the risk profiles of lenders, Commerzbank will need to show a Common Equity Tier 1 ratio of 8.5 percent in 2017, compared to 10.25 percent for 2016.

Commerzbank posted a capital ratio of 13.6 percent according to the Basel 3 transitional rules as of 30 September 2016.

The ECB supervises the euro zone's top lenders and is looking at whether banks need extra capital under a supervisory review and evaluation process, or SREP.

It considers how much extra capital a bank should hold on top of its mandatory minimum requirements, and helps to formulate "capital guidance" for each bank.

Reporting by Arno Schuetze; Editing by Tina Bellon

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