FRANKFURT, Sept 29 (Reuters) - Societe Generale’s Chief Executive Frederic Oudea is confident his bank will meet tougher post-crisis rules on European bank risk, a German newspaper quoted him as saying.
SocGen, like banks across Europe, is cutting costs and selling securities to soothe investors worried about balance sheets.
The ECB will start supervising the euro zone’s banks from late next year as part of a closer integration of the European financial system, in response to the crisis that threatened to overwhelm the bloc’s weakest government debtors and some of the banks that hold their bonds.
“As for the core capital ratios, I‘m not worried,” Oudea was quoted as saying by German newspaper Handelsblatt in a pre-release of an interview, which will be published on Monday.
Oudea added that the market already forced major banks to meet a core capital ratio of 10 percent, while national supervisors required a ratio of at least 7 percent.
“However, it is important to assure there are no hidden losses in the balance sheet.”
Earlier this month SocGen Deputy Chief Executive Severin Cabannes had said the bank was eyeing a 10 percent core capital ratio by end-2013, higher than its official target of 9.5 percent.
Oudea said he expected that by 2020 only four European banks would be active in international investment banking, including Societe Generale. He urged European supervisors to ensure a role for strong European players. (Reporting by Harro ten Wolde; Editing by Ruth Pitchford)