Central Bank of Savings Banks Finland Plc: The Board of Financial Supervisory Authority has made decision on the level of systemic risk buffer requirement for the Savings Banks Amalgamation in the meeting held 29 June 2018
Central Bank of Savings Banks Plc
Stock Exchange Release
The Board of Financial Supervisory Authority has made decision on the level of systemic risk buffer requirement for the Savings Banks Amalgamation in the meeting held 29 June 2018.
In the beginning of the year, 2018 Credit Institution Act was updated to include a new macroprudential measure, Systemic Risk Buffer. Financial Supervisory Authority may impose Systemic Risk Buffer on the basis of the structural characteristics of the financial system. Financial Supervisory Authority made decision on the level of systemic risk buffer requirements for Finnish credit institutions 29 June 2018. The systemic risk buffer requirement for Savings Banks Amalgamation will be 1 % of risk weighted assets, and this requirement will be applied starting 1 July 2019.
At the end of 2017, the Savings Banks Amalgamation had a strong capital structure, consisting primarily of CET1 capital. Total own funds were EUR 984.6 million (936.6), of which CET1 capital accounted for EUR 939.1 million (887.9). Savings Banks Amalgamation does not have additional Tier 1 capital. Tier 2 (T2) capital accounted for EUR 45.5 million (48.7), which consisted of debentures in the financial year. Risk-weighted assets amounted to EUR 5,165.7 million (4,805.4), they were 7.5 % higher than at the end of the previous year. The capital ratio of the Savings Banks Amalgamation was 19.1 % (19.5) and the CET1 capital ratio was 18.2% (18.5). The capital buffer of the Savings Banks Amalgamation was EUR 416 million at the end of year 2017.
SAVINGS BANKS GROUP
Tomi Närhinen, CEO Savings Banks Union Coop
Central Bank of Savings Banks Finland Plc belongs to the Savings Banks Amalgamation and Savings Banks Group and acts as Group's central credit institution. Central Bank of Savings Banks Finland Plc's role is to ensure liquidity and wholesale funding of the Savings Banks Group via operating in the money and capital markets, to operate payment transfers and issuance of payment cards.