Capital adequacy reports

Capital adequacy management is a process intended to ensure that the level of risk, which the bank and the Group assumes in relation to development of their business activities may be covered with the capital, taking into account the specific risk tolerance level and time horizon. The process of managing capital adequacy comprises in particular the compliance with applicable regulations of the supervisory and control authorities, as well as the risk tolerance level determined within the bank and the Group, and the capital planning process including the policy for capital acquisition sources. The objective of capital adequacy management is to maintain own funds at such level adequate to the scale and profile of the risk related to the Group’s activities at all times.