OTP Bank - the second place at the European level, following the stress test (02/08/2010)
Bucharest, August 2, 2010. The EU-wide stress testing exercise of financial institutions, coordinated by the Committee of European Banking Supervisors (CEBS) has been carried out by 91 banks from 20 EU Member States. Among others, OTP Bank Plc. represented Hungary in the test. The results of OTP Group are sound and well above the threshold expected.
Thus, OTP Bank is the second best in the European ranking from the 91 investigated banks, after the Spanish Banca March, while the Polish Powszechna Kasa Oszczednosci Bank Polski is on the third place according to the capital adequacy ratio, which was count in the test.
The objective of the EU-wide stress test exercise commissioned by the EU Council of Ministers of Finance (ECOFIN) and coordinated by CEBS in cooperation with the ECB, national supervisory authorities and the EU Commission, is to assess the overall resilience of the EU banking sector in accommodating possible future shocks.
The exercise took into account the situation as of end of 2009 and analyses the evolution of Tier 1 capital and the Tier 1 ratio of the banks on the basis of three possible scenarios for 2010 and 2011. The parameters of the stress test (i.e. the expected losses under the stress scenarios) were determined by CEBS together with ECB.
The most important accomplishment of the stress test is that, beyond the regularly published information, the stakeholders are in a position to receive comparable data on the capital status of the banks through a coordinated exercise with a commonly agreed methodology from a prudential and financial stability perspective.
Based on the received parameters under the most adverse scenario OTP Group’s Tier 1 ratio would stand at 16.2% by the end of 2011, which is more than four times the mandatory minimum level of 4%.
The appendices with the detailed results in the unified format designed by CEBS, are available on the website of OTP Bank.
OTP Bank Romania is a subsidiary of OTP Bank, which is the largest independent Central-Eastern-European banking group. OTP Bank provides universal financial services in Hungary, Romania, Montenegro, Croatia, Bulgaria, Russia, Ukraine, Slovakia and Serbia, for more than 12 million clients, through 1500 branch offices, ATM network and electronic channels.
