Legal basis:
Article 17.1 MAR Regulation
Contents of the Report:
The Management Board of PKO Bank Polski S.A. (“Bank”) informs that on the 30 of November 2020 it received a decision from the Polish Financial Supervision Authority (“PFSA”) concerning the additional capital requirement imposed on the Bank, i.e. in addition to the amount calculated in accordance with the appropriate legal provisions. The additional capital requirement was lower than previously established by the Bank.
The additional capital requirement imposed by PFSA on the Bank covers the risk of foreign currency mortgage loans for households on a standalone basis and equals to 0.27 p.p. over total capital ratio. The required level of total capital ratio is described in the article 92 item 1 letter c of the regulation (EU) No. 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions (“Regulation”). The additional capital requirement should be at least in 75% covered by Tier 1 funds, which is equivalent to the own-funds requirement of 0.20 p.p. over the amount of Tier 1 funds, calculated in accordance with the article 92 item 1 letter b of the Regulation.
Based on the Banking Law, the PFSA’s decision is final and enters into force immediately.
Before receiving the decision, the Bank was obliged by the PFSA to maintain own funds for the coverage of the additional capital requirement related to the risk of the above-mentioned mortgage loans at the level of 0.40 p.p., consisting of at least 75% of Tier 1 capital (equivalent to 0.30 p.p.). The Bank provided this information in the Report No. 19/2019.
The Bank fulfills the PFSA’s requirement for the minimum capital adequacy ratios on both standalone and consolidated levels.