At the yesterday's meeting, the European Banking Association (EBA) adopted the following resolutions regarding the restoration of confidence in the banking sector.
The measures to restore confidence in the banking sector (banking package) are urgent and necessary in order to strengthen credit rating supervision of the EU banking sector. With these measures it is necessary:
a. to ensure mid-term bank financing so as to prevent restrictions in lending and to ensure further crediting of the real economy as well as to harmonise measures for the implementation of the aforementioned;
b. to increase the quality and the amount of the bank capital so that banks can withstand tremors in the market, and to demonstrate such increase in a reliable and harmonised manner. A resolution has been adopted that following 30 September 2011 a significant increase in the highest quality capital (Core Tier I) to 9 per cent will be needed. The target regarding the capital amount will have to be achieved by 30 June 2012 on the basis of plans agreed with the national supervisors and harmonised with the EBA.
Nova KBM announces that as at 30 June 2011, its highest quality capital (Core Tier I) amounted to 9.48 per cent at the Group level, while at the Bank level it amounted to 9.53 per cent as at 30 September 2011. This means that Nova KBM has already met the EBA requirements. Nova KBM has no investments in Greek government bonds.
As at 30 June 2011, Core Tier I capital on the consolidated basis exceeded the target 9 per cent, therefore, as at 30 June 2011, Nova KBM had no capital deficit on the consolidated basis.
