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Monte Paschi confirms failed to meet EBA demands on capital

MILAN, Oct 3 (Reuters) - Italy's No.3 lender Banca Monte dei Paschi di Siena confirmed it had failed to meet a European Banking Authority request to plug a capital shortfall by the end of June.

In a statement on Wednesday, Monte Paschi said it had a capital shortfall of 1.728 billion euros ($2.23 billion) at the end of June, a situation that had prompted it to ask for state support.

However, the planned sale of unit Biver Banca and capital gains on bond buybacks should reduce the capital gap to 1.441 billion euros, Monte Paschi added. This will be plugged through a capital injection by the state in the form of special bonds.

Intesa Sanpaolo , UniCredit , UBI Banca

and Banco Popolare , four other Italian banks that also had to comply with EBA demands, all said their Core Tier 1 ratios had reached or surpassed the minimum 9 percent level by the end of June.

($1 = 0.7751 euros)

(Reporting By Lisa Jucca; Editing by Elaine Hardcastle)

(elisabetta.jucca@thomsonreuters.com; Tel +39 02 66129442; Reuters Messaging: elisabetta.jucca.thomsonreuters@reuters.net; Twitter: @ReutersLJucca)

Keywords: BANKS CAPITAL/MONTEPASCHI