[Reuters] UPDATE 1-RZB capital needs above 1.9 bln eur-Raiffeisen CEO
[RBIV.VI] * RZB capital needs to surpass 1.9 bln eur based on Q3 data-RBI * Raiffeisen Bank Int'l could still sell shares if markets improve * Capital "clean-up" to help address capital requirements (Adds detail, background) FRANKFURT, Nov 17 (Reuters) - Raiffeisen Bank International <RBIV.VI> (RBI) parent RZB group will need more than 1.9 billion euros ($2.6 billion) in extra capital to reach regulators' 9 percent core capital target, RBI's chief executive said. "The final figure you will hear next week when we have our third-quarter conference. It will be over and above 1.9 billion euros," Herbert Stepic told reporters on Thursday. Speaking on the margins of a financial conference, he declined further comment on the amount or on third-quarter results due on Nov. 24. The 1.9 billion figure was based on second-quarter results. European banking regulators want banks to hit the 9 percent goal by mid-2012 to fortify lenders against a financial downturn. Stepic said the banking group had drawn up a list of 20 different actions it could take to come up with the extra capital, including identifying engagements where it was using too much capital relative to what was needed. "We will have a capital clean-up process in the entire group," he said. Stepic said he stood by plans to sell RBI shares within the next year if conditions favoured the move, but he noted they were not favourable now. "We don't want to burn money," he said of the prospects of selling shares in volatile equity markets. Asked if investors holding non-voting participation capital will agree to convert it to regular equity, Stepic said he had great hopes that investors would accept either that or the other possibility on offer, which was to convert it into contingent capital. "I'm pretty confident that we will find a positive agreement with the participation capital investors," he said. Asked if investors should expect further writedowns in eastern Europe, Stepic said: "The fact that we didn't have to come with an ad hoc statement should give you some indication of the status." Raiffeisen will continue to support its Hungarian unit and had low exposure to European peripheral states, Stepic said. "We have almost no peripheral exposures. In Italy we have some because they are a neighbouring country (where) we have the banks to do the business and with Portugal and Spain we have less than 10 million euros," he said.