Decision of the Polish Financial Supervision Authority concerning the level of an additional capital requirement related to FX mortgage loan portfolio imposed on mBank S.A. at the consolidated level
Decision of the Polish Financial Supervision Authority concerning the level of an additional capital requirement related to FX mortgage loan portfolio imposed on mBank S.A. at the consolidated level
| Current Report | | |
| Drafted on: | 18.12.2020 |
| Current report No | 83/2020 |
| 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: | |
| With reference to the Current Report no 81/2020 of 2 December 2020, the Management Board of mBank S.A. (&ldquo|Bank"|) informs that the Bank received a letter from the Polish Financial Supervision Authority (&ldquo|PFSA"|) dated 17 December 2020 concerning the level of the additional own funds requirement at the consolidated level of the Capital Group over 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 (&ldquo|Regulation 575/2013&rdquo|). | In the above letter, the PFSA recommended the Bank to maintain, at the consolidated level, own funds for covering the additional capital requirement related to risk arising from foreign currency mortgage loans for households at 2.82 p.p. over the amount of the total capital ratio (TCR) referred to in article 92 item 1 letter c of the Regulation No 575/2013. The additional own funds requirement should be covered at least in 75% by Tier 1 capital (which corresponds to the capital requirement of 2.11 p.p. over the Tier 1 capital ratio referred to in Article 92 item 1 letter b of the Regulation no 575/2013) and at least in 56% by Common Equity Tier 1 capital at least in 56% by Common Equity Tier 1 capital (which corresponds to a capital requirement of 1.58 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).| The PFSA decision has the power of a final administrative decision and is immediately in force. Previously, the additional capital requirement for mBank S.A. on the consolidated level amounted to 3.11 p.p. for the total capital ratio, 2.33 p.p. for the Tier 1 capital ratio and 1.74 p.p. for the Common Equity Tier 1 capital ratio. The Bank informed about these requirements in the report no 48/2019 dated 19 November 2019.| 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 18.12.2020 |
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