BOV Tier 1 capital exceeds EBA minimum
Bank of Valletta plc notes the announcements made by the European Banking Authority (EBA) and the Malta Financial Services Authority regarding the information of the EU-wide Transparency Exercise 2013 and fulfilment of the EBA Board of Supervisors decision.
The information published showed that the BOV Group had a Tier 1 Capital Ratio of 11.3% as at June 2013 up from 10.7% in December 2012. Tier 1 Capital stands at €405 million compared to the minimum of €314 million required by the EBA.
In May 2013 the EBA adjusted the timeline of the next EU-wide stress test so to conduct the exercise in 2014 once the asset quality reviews are completed. However, to ensure transparency and comparability over the years, the EBA’s Board of Supervisors decided to provide, in the second half of 2013, appropriate disclosure on the actual exposures of the EU banking sector. In its October meeting the Board of Supervisors agreed on the form and scope of the transparency exercise to be conducted in November / December 2013 to assure a sufficient and appropriate level of information for market participants.
The sample of the exercise includes 64 banks and for each of them the following set of information was collected for disclosure:
1. Composition of capital
2. Composition of Risk Weighted Assets (RWA) by risk type
3. Exposures to sovereigns (central, regional and local governments) in EEA (direct and indirect exposures by maturity buckets and country)
4. Credit risk exposures (defaulted and non-defaulted) and RWAs by country with breakdowns for Institutions, Commercial Real Estate, Retail and Corporate; displayed by regulatory approach (AIRB,F-IRB, STA)
5. LTV per portfolio, value adjustments and provisions
6. Market risk and securitisation exposures