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