Sp Mortgage Bank 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
Sp Mortgage Bank 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
Sp Mortgage Bank is part of the Savings Banks Group and the Savings Banks Amalgamation. The role of Sp Mortgage Bank is, together with Central Bank of Savings Banks Finland Plc, to be responsible for obtaining funding for the Savings Banks Group from money and capital markets. Sp Mortgage Bank is responsible for the Savings Banks Group's mortgage-secured funding by issuing covered bonds.