According to a new report, under the Basel III standards, the BAWAG PSK expects to have a capital ratio of at least 9% of risk-weighted assets by the end of this year. The BAWAG PSK is an Austrian bank majority, which is owned by Cerberus Capital Management.

BAWAG is one of the six Austrian banks has raised 300 million Euros in two tier capital last month. It is expected to come under direct supervision of the European Central Bank (ECB) the next year. BAWAG has been successful in its mission to raise such amount through a placement with institutional investors.

The last parts of its structured credit portfolio have also been sold by the BAWAG the previous month. This leads to an improvement in its capital ratio to about 300 million Euros. Reuters have been reported that the ECBN will now ask the top banks of Euro zone's to have a capital buffer of 8% in an upcoming balance sheet.

Out of this 8% capital ratio, 7% is of common equity tier 1 (CET1) ratio along with a 1% surcharge for systemically relevant banks. Byron Haynes, Chief Executive, said: "We anticipate a fully-loaded Basel III CET I ratio of at least 9.0 percent by year-end 2013 for BAWAG P. S. K. based on our current forecast".