Of Special Interest
13th January 2012
Volksbanken to sell Eastern subsidiary
Österreichische Volksbanken is negotiating the sale of VBI, its subsidiary operating in East Europe to Sberbank according to media reports. A deal is expected to be announced shortly.
Volksbanken was not in a good position to raise the necessary capital required to meet the 9% CT1 capital requirement for Europe's largest banks which comes into force in July 1st. The sale will mean it is no longer considered one of the largest banks and does not have to meet the higher capital levels.