East European banks could pay Basel II dividend

Major east European banks could take advantage of the Basel II bank capital adequacy accord to reduce their high levels of capital charges through paying higher dividends, a senior Czech banker said in April.

"We need slightly more capital than is necessary according to [the Basel II guidelines], but we are above the conservative 10--12% level [appropriate for the region]," said Pavel Kavanek, head of the Czech banking association, as reported by the news agency Reuters.

The risk-based Basel II accord, like its simpler Basel I predecessor, will require banks to keep at least 8% of their assets in the form of protective capital to guard against the risks of banking. Basel II is scheduled to come