Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Erste May Lose Right to Use Savings Banks’ Capital in EU Plan

Erste Group Bank AG may have to abandon using affiliated savings banks to bolster its reserves under the European Union’s proposed implementation of global capital rules.

The EU’s proposals don’t give Erste the leeway it would need for the capital to be recognized, spokesman Michael Mauritz said on the telephone from Vienna. Austria’s biggest lender will seek to lobby lawmakers at the European Parliament for an exemption for Erste, he said.

Erste in 2002 reached a deal with 51 regional savings banks to guarantee each other’s deposits. While Erste has little or no stake in the savings banks, the system gives the Vienna-based lender powers over them. Erste is counting the assets and the capital of the banks toward its reserves.

The EU plans are based on a global accord among members of the Basel Committee on Banking Supervision. The Basel deal would lead to Erste’s capital ratio dropping about 1.3 percentage points, the lender said last year.

The bank will seek to avoid the capital reduction by making tweaks to the guarantee system if it can’t convince the EU to change its proposals, Mauritz said.

“We have to see whether this capital will be considered in the negotiations” in the EU, “and if it’s not, we’ll have to make changes in the contract,” Mauritz said.

Erste is scheduled to report second-quarter results on July 29. Its core tier 1 capital excluding state aid stood at 8 percent at the end of the first quarter.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.