The ECB required Commerzbank AG to have a common equity Tier 1 capital ratio of 8.5% in 2017, down from 10.25% for 2016.
The German lender said Dec. 13 that the requirements comprise the Pillar 1 minimum requirement of 4.5%, a Pillar II requirement of 2.25%, a 1.25% capital conservation buffer and a 0.5% buffer requirement for domestic systemically important banks. As of the end of September, Commerzbank's CET1 ratio under Basel III was 13.6% on a transitional basis.
The bank said its 2019 CET1 ratio requirement under the full application of Basel III will be 10.75%, assuming a constant Pillar II requirement, down from an 11.75% fully loaded requirement set for 2016. Commerzbank's fully loaded CET1 ratio was 11.8% as of Sept. 30.
The requirements were determined through the ECB's Supervisory Review and Evaluation Process.