Sberbank Europe and VTB Austria have raised capital to head off a potential shortfall under ECB-led stress tests, according to Austria's Financial Market Authority and the Austrian National Bank. Until recently, both banks lagged behind the 5.5% threshold, with Sberbank Europe reaching a common equity tier 1 ratio of 4.1% and VTB Austria at 4.2%; however, both were able to more than cover the shortfall through material capital increases of $258.5m and $215m respectively. Tests of other banks revealed that Portugal's Novo Banco needed to fill a $1.5bn capital hole, resulting in the ECB threatening to delay the bank's planned sale.
Sberbank Europe and VTB Austria have raised capital to head off a potential shortfall under ECB-led stress tests, according to Austria's Financial Market Authority and the Austrian National Bank. Until recently, both banks lagged behind the 5.5% threshold, with Sberbank Europe reaching a common equity tier 1 ratio of 4.2% and VTB Austria at 4.1%; however, both were able to more than cover the shortfall through material capital increases of $258.5m and $215m respectively. Tests of other banks revealed that Portugal's Novo Banco needed to fill a $1.5bn capital hole, resulting in the ECB threatening to delay the bank's planned sale.