Published: January 3, 2012
Austrian parent group will use funds to strengthen holdings in Czech and Slovakian banks.
Austria’s Raiffeisen Zentralbank Österreich (RZB) has issued €342mn (US$442mn) in participation capital to help strengthen two of its banks in Central and Eastern Europe.
The money will be used to buy shareholdings previously held by Raiffeisen regional banks, specifically a 24% stake in Raiffeisenbank a.s. in the Czech Republic and a 13% stake in Slovakia’s Tatra banka a.s.
This group says the deals will improve its capital position under Basel III, which effects the recognition of minority holdings of other shareholders.
Austria’s Financial Market Authority and the Oesterreichische Nationalbank are implementing the Basel III guidelines earlier than planned as part of new measures to make the business models of local banks with CEE subsidiaries more sustainable.