Commerzbank says it can meet capital requirements

Commerzbank announced Thursday that it had found a way to meet European Union requirements to increase its capital cushion against possible losses from the eurozone debt crisis, AP reported. The bank, whose shares rose as much as 14 per cent Thursday on the news, said it would plug a Euro 5.3 billion ($6.8 billion) capital shortfall identified by the European Banking Authority by "relying on its own strength" - rather than taking another state aid package. The German government already owns 25 percent of the bank after a previous bailout. Commerzbank said it will raise Euro 6.3 billion in capital by holding back cash from its quarterly earnings and cutting back on risky investments. The bank has until June 30 to find the additional financial padding.