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Chile's BancoEstado targets proposals to meet new capitalization level

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Chile's BancoEstado targets proposals to meet new capitalization level

Banco del Estado de Chile would need to boost its capital by between $1.6 billion and $2.2 billion cost in order to meet new minimum capital requirements, Diario Financiero reported.

Although the exact figure of capital need is not yet calculated, the projected gap would be reportedly met with the bank's own earnings as well as with an injection from the economic ministry.

"We are making various proposals ... This has a lot to do with the co-capitalization that we can make," CEO Juan Cooper Álvarez was quoted as saying.

The report comes after president of Chile Sebastián Piñera formally enacted the new banking law, which raises the minimum capital ratio by 2 percentage points to 10.5%.

Analyst also believe the new law might also leave banks such as Scotiabank Chile and Itaú CorpBanca in needs of further capital.