UniCredit BankAustria AG may have to meet tougher capital requirements as aregulatory condition for the transfer of its central and eastern European assets toparent UniCredit SpA,Reuters reported July 11, citing "a source familiar with the matter."

The asset transfer, which is scheduled to complete in 2016,forms part of UniCredit's restructuringplan that alsoentails €1.6 billion in costs savings by 2018, Reuters noted. The transferwould take UniCredit Bank Austria's common equity Tier 1 ratio to a "toolow" level of 11.3%, the source said.

Austrian broadcaster ORF and daily Kurier also reported that UniCredit Bank Austria would need ahigher capital buffer to receive regulatory approval for the asset transfer,according to Reuters.