Legal basis:
Article 17.1 MAR Regulation
the Report:
The Management Board of PKO Bank Polski S.A. (“Bank”) informs that on the 11 of February 2022 it received a recommendation from the Polish Financial Supervision Authority (“PFSA”) in which the PFSA recommended the Bank to limit the risk occurring in the Bank's operations by maintaining both at the standalone and at consolidated basis own funds to cover the additional capital add-on in order to absorb potential losses resulting from the occurrence of stress conditions (P2G). The required level of total capital ratio is described in the article 92 item 1 letter c of the regulation (EU) No. 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and equals to 0.29 p.p. over total capital ratio, increased by the additional own funds requirement referred to in Article 138(2)(2) of the Banking Law and by the combined buffer requirement referred to in Article 55(4) of the Act on macro prudential oversight.
The additional capital requirement should be made up of Tier 1 funds only.
The P2G has two components:
- primary capital add-on, based on the supervisory stress tests carried out by PFSA in 2021 - in the amount of 0.17 p.p., and
- supplementary capital add-on, based on the analysis of the impact of interest rate increases on credit risk, adjusted for the assessment of the internal capital in terms of taking into account credit risk related to the increase in interest rates, carried out by PFSA in 2021 - in the amount of 0.12 p.p.
In line with the PFSA methodology for determination of the capital add-on recommended under Pillar 2 (P2G), the maximum P2G capital add-on can be 4.5 p.p.