02.11.2021

Decision of Polish Financial Supervision Authority concerning an additional capital requirement related to FX mortgage loan portfolio imposed on mBank S.A.

Current Report 

Drafted on:

02.11.2021

Current report No

55/2021

Legal basis: 

§ 17 Regulation (EU) No 596/2014 Of The European Parliament And Of The Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC

Contents: 

The Management Board of mBank S.A. (“Bank") informs that on 2 November 2021, the Bank received the decision of the Polish Financial Supervision Authority (“PFSA") dated 29 October 2021 concerning the level of the additional own funds requirement above the amount calculated in accordance with the detailed rules defined in the Regulation of the European Parliament and of the Council (EU) No 575/2013 of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No. 648/2012 (“Regulation no 575/2013).

 

The PFSA requires the Bank to maintain on the individual basis own funds for covering the additional capital requirement related to the risk of foreign currency mortgage loans for households at 2.45 p.p. over the amount of the total capital ratio (TCR) calculated in accordance with article 92 item 1 letter c of the Regulation no 575/2013, which should be covered at least in 75% by Tier 1 capital (which corresponds to the capital requirement of 1.83 p.p. over the Tier 1 capital ratio calculated in accordance with Article 92 item 1 letter b of the Regulation no 575/2013) and at least in 56% by Common Equity Tier 1 capital (which corresponds to a capital requirement of 1.37 p.p. over the Common Equity Tier 1 capital ratio calculated in accordance with Article 92 item 1 letter a of the Regulation no 575/2013).

 

This decision, based on the article 11.2 item 21 of the Banking Law, has the power of a final administrative decision and is immediately in force.

 

Previously the Bank on the individual basis maintained own funds for covering the additional capital requirement related to risk of foreign currency mortgage loans for households at 3.24 p.p. which consisted of at least 75% of Tier 1 capital (equivalent to 2.43 p.p.) and at least of 56% of Common Equity Tier 1 capital (equivalent to 1.81 p.p.). The Bank informed about these requirements in the current report no 81/2020 dated 2 December 2020.

 

At the date of this current report, the Bank fulfils the PFSA requirements related to the minimum capital adequacy ratios on both the individual and consolidated levels.

 

 

SIGNATURE OF THE PERSONS REPRESENTING THE COMPANY

Vice-director for investment supervision, Compliance Department

Maciej Mołdawa 02.11.2021