Current Report no. 35 (2016)

Recommendations of the Financial Supervision Commission about the risks of the portfolio of foreign currency mortgage loans to households

Management Board of Bank Zachodni WBK S.A. ("the Bank") informs that on 25th October 2016 it received the following recommendation from the Polish Financial Supervision Authority (Komisja Nadzoru Finansowego) to maintain own funds to cover the additional capital requirement to secure the risk arising from FX mortgage loans for households at 0.62 pp over the amount calculated in accordance with art. 92 clasue 1 letter c of the Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 – “Regulation no. 575/2013”) that should be composed at least in 75% of Tier I capital (equivalent to own funds requirement of 0.47pp over the amount calculated in accordance with art. 92 clause 1 letter b of the Regulation no. 575/2013) and at least in 56% of the common equity Tier I capital (equivalent to own funds requirement of 0.35pp over the amount calculated in accordance with art. 92 clause 1 letter a of the Regulation no. 575/2013).

At the date of the report the Bank fulfills the Polish Financial Supervision authority requirement related to the minimum capital adequacy ratio on both the individual and consolidated levels.

Legal basis:
art. 17 of (1) MAR – inside information.