VIENNA (Reuters) - Austria's Raiffeisen Bank International (VI:RBIV) and its unlisted parent Raiffeisen Zentralbank [RZB.UL] (RZB) said they will look into whether they should merge, aiming to bolster RZB's capital reserves and improve efficiency.
The announcement on Tuesday came after months of speculation over a potential merger, which would simplify the group's complex structure and relieve pressure on RZB from regulators to lift its capital reserves.
RZB's fully loaded common equity tier 1 ratio, a measure of financial strength, stood at 10.3 percent at the end of 2015, compared with Raiffeisen Bank International's 11.5 percent.
"The objectives of a consolidation of the businesses would be simplification of the corporate structure and adapting the group more closely to increased regulatory requirements," Raiffeisen Bank International (RBI) said in a statement.
The review would be completed within six months so that any decision to merge would be approved before the end of the year, RBI said, adding that a merger would not affect RBI's listing.