Report No. 26/2018

Legal basis:

Article 17(1) of the MAR 

The report:

PKO Bank Polski S.A. („Bank”) informs that it has received a response from Polish Financial Supervision Authority (“PFSA”) regarding applicability of a risk weight of 35% to exposures fully and completely secured by mortgages on residential property. The PFSA indicated that provisions of Regulation No. 575/2013 of the European Parliament and Council (CRR) are binding in this regard. The Bank treats this position as a possibility for broader application of preferential risk weight of 35%, based i.a. on an extended catalogue of sources on real property data utilized for the purpose of collateral valuation. The Bank predicts that such an approach will have a positive impact on the consolidated capital ratios in the 3rd and 4th quarter of 2018 in the total amount of 0.5 – 1.0 p.p.