Results of the 2015 Comprehensive Assessment for Attica Bank
31/10/2015 - Press Releases
In line with the 2015 Comprehensive Assessment (CA) performed by the ECB for the four significant banks in Greece, the Bank of Greece (BoG) conducted a similar exercise for Attica Bank. To ensure a level playing field, the BoG closely followed the methodology and overall approach applied by the ECB for the four significant banks.
The Comprehensive Assessment comprised an Asset Quality Review (AQR) and a forward-looking Stress Test, in order to assess the specific recapitalisation needs of Attica Bank. The AQR resulted in adjustments to the bank’s asset carrying values as of 30 June 2015 and was incorporated in the projection of Attica Bank’s capital adequacy under hypothetical scenarios performed in the Stress Test.
In particular, the Stress Test was performed as a top-down exercise, based on input data provided by the participating bank and quality assured by the BoG. It consisted of both a baseline and an adverse scenario, applied for the period between 30 June 2015 and 31 December 2017. Attica Bank was required to maintain a minimum Common Equity Tier 1 (CET1) ratio of 9.5% under the baseline scenario and a minimum CET1 ratio of 8% under the adverse scenario.
Overall, the Comprehensive Assessment identified a shortfall of €857 million in the baseline scenario and €1,021 million in the adverse scenario, after comparing the projected solvency ratios with the above thresholds defined for the exercise and without taking into account any capital mitigating actions. For this reason, Attica Bank will submit a capital plan to the BoG within one week, in order to explain how it intends to cover the shortfall. Once this plan is assessed, Attica Bank may start the private capital raising process to cover the final estimated capital needs.