ECB’s comprehensive assessment of 9 banks completed; Municipality Finance Plc will become subject to ECB supervision
The European Central Bank has today published the results of its comprehensive assessment. The 2015 comprehensive assessment comprised an asset quality review (AQR) and stress testing. The assessment included 9 banks, one of which was the Finnish Municipality Finance Plc.
The threshold set by the comprehensive assessment was the maintenance of 5.5% Common Equity Tier 1 capital in the stress test scenario of weak economic developments, after revaluation of financial assets due to the outcome of the asset quality review. Municipality Finance Plc's Common Equity Tier 1 capital was 20.8% in the comprehensive assessment scenario of weak economic developments.
Comprehensive assessment is conducted for all credit institutions about to become subject to ECB supervision. The purpose of the assessment is to increase balance sheet transparency and strengthen the capital base. Municipality Finance Plc will become subject to ECB supervision as from 1 January 2016. At the end of 2014, Municipality Finance Plc was the third largest Finnish credit institution, with a balance sheet total of EUR 30 billion.
Of the credit institutions operating in Finland, Nordea Bank Finland Plc, OP Group and Danske Bank Plc are also subject to direct ECB supervision.
For further information, please contact
- Jyri Helenius, Head of Department, tel. +358 10 831 5312