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The bank also strengthened its balance sheet so that it is more resilient to financial shocks in the future, with its capital buffer reaching 11.5 per cent; it has a target of 13 per cent that it expects to achieve by the end of 2016.
The bank's cooperative structure means it cannot sell equity to improve its capital buffer but must rely on selling assets and pooling capital from its profitable nonbanking businesses.
Chief Executive Alex Wynaendts said that it was a "prudent" to reinforce its capital buffer well in excess of its AA rating requirements because of volatile markets.
Updated at 8.36am GMT 8.11am GMT Co-op Baneedseds £400m more to prop up finances The Co-operative Bank has announced that it will suffer a loss of £1.2bn to £1.3bn for 2013 and has revealed that it needs an extra £400m to strengthen its capital buffer.
Its capital buffer includes 3 billion euros ($4.3 billion) it received from the federal government in a bailout.
The bank has until 2019 to increase its capital buffer.
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RBS, 79% owned by the taxpayer, would have been required to submit new plans had it not already begun to raise its capital buffers at the end of 2013.
The loss wiped out its capital buffers and sent its shares falling by more than 75% before the stock was suspended on Friday.
This automatically reduces a bank's debt and boosts its capital buffers at a time when external investors could be reluctant to inject new money.
Deutsche Bank has long faced criticism that its capital buffers, the money that banks set aside to absorb losses in a crisis, were inadequate and that it carried too much risk from derivatives and other volatile investment banking products.
The bank has never burned through more than about one-sixth of its capital safety buffer in any crisis, estimates Mr Barua.
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