Tatra banka easily passed ECB asset quality review and stress tests
Final results of the asset quality review and stress tests of banks, which were subject to the assessment and will be directly supervised by the European Central Bank as of 4 November were published today at 12.00. Tatra banka also took part in the assessment as one of three systemically significant financial institutions in Slovakia.
Based on the results, Tatra banka performed all requested criteria established by the European Central Bank (ECB) without additional need for its own resources. Both in the baseline scenario of the stress test as well as in the adverse scenario, Tatra banka exceeded minimum requested thresholds set by ECB. In the case of the baseline scenario, the bank reached level 14.78% of Common Equity Tier 1 (CET1) as compared to the minimum required value of 8%. In the case of the adverse scenario, the bank reached level 11.68% of Common Equity Tier 1 (CET1) as compared to the minimum required value of 5.5%.
The asset quality review by the ECB, which is based on a conservative methodological approach, represents a modification of Common Equity Tier 1 (CET1) by 55 basis points mainly due to collective provisioning adjustments.
"We are glad that the ECB asset quality review, as well as stress test assessment confirmed stability of the bank even in case of unfavourable events. It is a signal for our clients, shareholders and also for the market that Tatra banka is a sound institution with a cautious approach to risk management," said Igor Vida, CEO and Chairman of the Board of Directors of Tatra banka.
The ECB assessment lasted almost a year with more than 200 Tatra banka employees who participated in its different stages.
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