Reuters reported the ECB presentation revealed on Monday that one euro zone bank is falling short of the European Central Bank’s capital requirements for 2019. This means it will face restrictions on how much it can pay out to investors and executives.
The ECB did not name any of the banks in its annual presentation on the standing of the euro zone’s top lenders, which showed a slight increase in capital demands from the year before as EU “buffers” introduced in the wake of the financial crisis are phased in.
These requirements are closely watched by analysts as any bank that fails to meet them faces a cap on how much it can pay in dividends, bonuses and certain coupons and comes under pressure to raise capital.
According to the ECB’s presentation, most of the 119 banks under ECB supervision had way more Core Equity Tier 1 (CET1) capital than demanded by supervisors. Four barely made their required level and just one fell short.
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