“The topics refer to the implications of the capital increases in European banks and the concern that the new requirements do not impact emerging markets,” Adrian Vasilescu, adviser to the central bank governor, told MEDIAFAX.
He said a deputy governor with the central bank attended the meeting in Vienna.
According to a European Central Bank’s plan outlined in November, banks need to have a 9% core tier 1 ratio by the end of June. The bank recapitalization, aimed to strengthen the continent’s bank sector and limit potential fallout from Greece, could lead to deleveraging in non-core markets, particularly in emerging countries.
News agency Bloomberg said earlier Wednesday that the banking officials present in Vienna were to discuss Austria’s proposals to limit risk exposure to eastern European countries for its banks. Bloomberg cited people with knowledge of the meeting agenda.
Austria’s central bank in November recommended the country’s banks to limit lending to their subsidiaries in central and eastern Europe, linking future loans to growth in local refinancing.