Banks: Pillow over 9.5 billion of deferred
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The BoG abolished the 20% threshold. How increasing Core Tier I indicators for Alpha, ETE, Piraeus Bank and Eurobank. Why not a pillow and additional injection ahead of stress tests. What marks the PRM of Eurobank.
Pillow over 9.5 billion offer banks, with a view of determining their capital requirements by completing the simulation exercise, the decision of the Bank of Greece to abolish the cap on recognition of deferred tax on basic regulatory capital.
23/12/2013 By act of the Executive Committee of the BoG (Act 36) repealed the 20% ceiling which prosmetrountan the basic regulatory capital of banks deferred tax on loss from the PSI +. Simultaneously incorporated into Greek law the EU Directive (CRD 4) the rules for transition to Basel III
The EU Directive provides for the full recognition of deferred tax directly to gradually reduce to 10% of basic regulatory capital in 2023 to reduce recognition by 10% annually. The decision confirms fully fully confirms the recent publication of Euro2day.
After the PSI + government legislated the possibility of clearing banks with losses of stratospheric profits of the next 30 years. Of the total deferred tax, however, prosmetrountan based decision bog as applicable and 31/12/2013, the basic regulatory capital of banks only a part (pp. deferred tax can not exceed 20% the chapter corresponding to common shares).
With the abolition of the ceiling above the banks can count all of the deferred tax on their regulatory capital, which has already been done by the European Banking Authority (EBA).
Note that all of the deferred tax from the PSI is 12 billion of which 2.4 billion have already been identified and the remaining 9.6 billion constituting an additional cushion.
Feature is that due to the full calculation of deferred tax four Greek banks (National, Alpha, Piraeus, Eurobank) showed on the basis of the EBA on 30/6/2013 higher Core Tier I in relation to that resulting from the financial statements 6months 2013.
Specifically, based on estimates of Euroxx, the Core Tier I ratio of Alpha Bank can be enhanced to 14.5% (from 13.5% in the nine months) of Piraeus to 15% (from 13.5% in 9M) National 15.5% (from 9.4% in the nine months) and Eurobank to 13.5% (from 8.1% in the first nine months) .
As emphasized in the stock, the above numbers include all of the deferred tax, without being certain that banks will take a similar tactic.
The movement of the bog is estimated that cushion ahead of the final determination of capital needs of banks after the completion of the stress that ran the BlackRock.
This is because both the deferred tax computed on capital will be reduced by 20% per year so the stress tests will count part and not all, also because the possibility remains likely to afstiropoiithoun assumptions increase the expected losses or credit portfolio will reduce contribution estimated operating profitability.
Therefore the decision of the BoG shall, according to bank officials that the amount of the final capital needs will not exceed the levels anticipated.
The European Central Bank has said it will recognize the regulatory capital of banks deferred tax have figured out already, but the central banks will move to control the height and the recoverability of deferred tax control that will perform during the six months in the systemic European banks.
What marks the decision of the BoG Eurobank
In light of the above decision of the BoG is not changing significantly the design of Eurobank capital increase. Despite that the bank has deferred tax 3 billion, that counted most in its entirety in key regulatory capital planning for capital increase of EUR 2.5 billion does not change.