BUSINESS

Germany's Commerzbank say it will meet new capital requirements on its own

01/19/2012 04:43 EST | Updated 03/19/2012 05:12 EDT
FRANKFURT - Germany's Commerzbank says it has found a way to meet new European Union requirements to increase its cushion against possible losses from the eurozone debt crisis.

The bank says it will do it by "relying on its own strength" rather than taking another state aid package. The German government owns 25 per cent of the bank after a previous bailout.

Commerzbank said it will raise €6.3 billion ($8.08 billion) in capital by holding back cash from its quarterly earnings and cutting back on risky investments. That would more than cover the requirement from the European banking regulator to find €5.3 billion in additional financial padding by June 30.