Credit Agricole sells stakes in 39 regional banks

The French bank Credit Agricole (CA) announced in a release today that it was going to sell its stakes in 39 French regional banks to increase the principal.
Transactions totaling EUR 18 billion will boost the tier 1 capital (the core measure of a bank's financial strength) of Credit Agricole to 11%, the New York news agency Bloomberg cites Credit Agricole as saying in the release.
Credit Agricole Chief Executive Officer Philippe Brassac (56) has begun the reorganization of financial relations with French regional banks in order to free the capital in the light of stricter banking regulations.
According to this plan, regional creditors will establish a mechanism to acquire 25% of shares currently held by Credit Agricole, Bloomberg reports and adds that CA will provide a EUR 11 billion loan to finance that agreement.
Following this announcement, the Credit Agricole shares rose 5.9% in Paris, to EUR 8.88.

Crédit Agricole Bank

RBA banka a.d. Novi Sad

Credit Agricole

CA

Philippe Brassac

tier 1 capital