Discount Bank's core Tier-1 capital adequacy ratio was 7.17% at the end of June, and it needs NIS 500 million to meet the 7.5% threshold.
Israel Discount Bank (TASE: DSCT) is likely to obtain from the Bank of Israel Banking Supervision Department a one-year extension until the end of 2011 to reach the mandated core Tier-1 capital adequacy ratio of 7.5%.
Core Tier-1 capital is a bank's basic capital, including shareholders' equity and the bank's accumulated profits. Amendments to Basel II - The New Basel Capital Accord of the Basel Committee on Banking Supervision, called Basel III, all banks must comply with the core Tier-1 capital adequacy ratio. In June, the Bank of Israel published guidelines setting this figure at 7.5%, which the banks must reach by the end of 2010.
Discount Bank's core Tier-1 capital adequacy ratio was 7.17% at the end of June, and it needs NIS 500 million to meet the threshold.
Published by Globes [online], Israel business news - www.globes-online.com - on October 18, 2010
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