Banks are aware of any share says an expert

Approaching on a scenario to the American on the fundraising of European banks On the eve of the publication of the "stress tests" Europeans, are reminded that their US equivalent had caused a massive wave of calls to the market, the issue is ever more topical. European banks seem to be identified on any part.

First, the Basel Committee, responsible for setting the prudential rules, confirmed last week willingness to modify the own funds gives proposing inter alia that the own funds of core Tier-1 ("core Tier-1") are made up in majority of ordinary shares and profits set aside. Non-voting shares and hybrid titles subscribed to by the States to help institutions could, therefore, ultimately no longer be included in own funds.

Moreover, the French banks are encouraged to repay, the support of the State becoming more and more expensive. The last words of Bercy on the issue leaves little doubt. The Government has "lent EUR 20 billion, he retrieves 1.4 billion in interest and, in the coming days, probably for some before the end of the year 2009, French banks will make the money lent them", Christine Lagarde, the Minister for the economy, on France Inter slipped yesterday.

Whereas, until now, the French banks projected next year to repay the public debt, the schedule seems to accelerate.

Satisfactory ratios

A priori, nothing really press: French banks capital ratios remain widely over the current requirements of the regulator and the reform under discussion should not apply before 2011. But the demands are high. "Banks are aware of any share," says an expert. On the one hand by the regulator, which is concerned to see miss a window of shooting and cope with a traffic jam, while other European banks will also embark on the market. On the other hand by foreign investors, which are full of cash to place and who see the French banks an opportunity to better quality.

The rhythms and repayment capacity should, however, differ from one institution to another. "If they wanted, the French banks would have difficulty to appeal to the market all at the same time, estimated Jean-Christophe Mieszala, senior Associate Director in McKinsey.". If elles can do so before the end of the year, as much as they benefit from. However, they may have to manage the perception that would be too high precipitation to repay. Psychologically, repay in 2010 would perhaps better seen than in 2009.

"It will be the balance sheet at year end," declared Frédéric Oudéa, CEO of Société Générale. "There is no concern for hybrid securities, since this market reopened for the preferential shares, everything is a question of timing," said an internal source. BNP Paribas said it ready to gradually repay "the actions of preference" undertaken by the French State for EUR 5.1 billion, at the beginning of the year 2010. Credit Agricole said his side "no hurry" and François Pérol, BPCE pattern (Bank popular-Caisse d'Epargne) has estimated that his group could start paying towards the end of next year. Having received a total of aid of EUR 7 billion, the mutualist and its subsidiary Natixis close certainly the French round of capital increases.