The letter from the Polish Financial Supervision Authority concerning the recommendation for mBank S.A. to maintain an additional capital requirement related to FX mortgage loan portfolio at the Group level
The letter from the Polish Financial Supervision Authority concerning the recommendation for mBank S.A. to maintain an additional capital requirement related to FX mortgage loan portfolio at the Group level
| Current Report | | |
| Drafted on: | 30.11.2018 |
| Current report No | 61/2018 |
| Abbreviated issuer&rsquo|s name | mBank |
| Contents: | |
| With reference to the Current Report No. 52/2018 of 17 October 2018, the Management Board of mBank S.A. ("|Bank"|) informs that the Bank received a letter from the Polish Financial Supervision Authority ("|PFSA"|) dated 29 November 2018, concerning the level of additional own funds requirement over the amount calculated in accordance with detailed rules defined in the Regulation (EU) No 575/2013 (&ldquo|Regulation&rdquo|) for the Group level. | In the above letter the PFSA recommended mBank to maintain own funds for covering the additional capital requirement related to the risk of the foreign currency mortgage loans for households at the Group level of 3.64 p.p. over the amount of the total capital ratio (TCR) calculated in accordance with art. 92 item 1 letter c of the Regulation, which should be covered at least in 75% by Tier 1 capital, which corresponds to the capital requirement of 2.73 p.p. over the Tier 1 capital ratio calculated in accordance with Article 92 item 1 letter b of the Regulation and at least in 56% by Common Equity Tier 1 capital, which corresponds to a capital requirement of 2.04 p.p. over the Common Equity Tier 1 capital ratio calculated in accordance with Article 92 item 1 letter a of the Regulation.| Previously, the additional capital requirement for mBank S.A. on the consolidated level amounted to 3.53 p.p. for total capital ratio, 2.65 p.p. for Tier 1 capital ratio and 1.98 p.p. for Common Equity Tier 1 capital ratio.| At the date of this current report, mBank fulfils the PFSA requirement related to the minimum capital adequacy ratios on both the individual and consolidated levels.| |
SIGNATURE OF THE PERSONS REPRESENTING THE COMPANY
| Deputy Director of Compliance Department | Andrzej Jakubiak 30.11.2018 |