Andreas Artemis, Chairman of the Bank of Cyprus, Cyprus' largest bank said the bank disagrees with the proposal by Troika that the Central Bank of Cyprus should direct all banking groups in the island to increase the minimum Core Tier 1 capital ration
from the present 8% to 10% and to maintain this level for the duration of the adjustment programme to be agreed between the Troika and Cyprus.
The Committee of European Banking Supervisors that ran the tests said that five Spanish lender, Germany s Hypo Real Estate Holding AG and Agriculture Bank of Greece SA were the seven that fell short of maintaining the minimum 6% accepted Tier 1 capital ration
under a simulated recession and sovereign debt crisis.
Authorities determined that that 22 of the largest banks in the EU should keep a Tier 1 capital ration
"well above" 9 percent during 2009 and 2010 to withstand a worse than expected economic downturn.
"While maintaining strong balance sheet, sound liquidity position, and solid capital rations
, UNB continues to maintain its strategy to cautiously pursue loan growth while managing the downside risks," said Mohammad Nasr Abdeen, chief executive officer of UNB.
Regarding capital rationing, Chinese firms are more likely to have capital rationed
by external managers or by external agreements, while U.S.
The banking sector within such a country would probably have to be taken into state control and the withdrawal of capital rationed
. And this is the likely best case.
However, large bank holding companies (those with $50 billion or more in total assets) will be required to "take affirmative steps to improve capital rations
, such as external capital raises, when those steps would be needed to meet each Basel III transition on time," Tarullo added.
- The Middle East producer governments will always be capital rationed
to the extent that they cannot fully fund oil and gas production developments.