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SYSTEM & BIGBANK<br />
Group 1
✓ Floralia ‘s banking sector consists of 11 banks,<br />
of which 4 are systemically important<br />
✓ On average banking system is well capitalized<br />
(27% CAR)<br />
✓ The level of NPLs is quite comfortable<br />
(8,72%)<br />
Description<br />
✓ BIGBANK if the biggest bank of the Floralia’s<br />
banking sector<br />
✓ BIGBANK is a systemic bank<br />
✓ BIGBANK is well capitalized (23% CAR), but situated<br />
below the median<br />
✓ The level of NPLs is quite low (4,98%), high<br />
concentration of NPLs in 100% (3,5%)<br />
✓ BIGBANK’s loan portfolio accounts 34% of total<br />
loans of the system<br />
✓ Main activity of the bank - lending
Macroeconomic factors<br />
with the most impact:<br />
1) FX<br />
2) CPI<br />
3) Industrial production<br />
After the applied shocks, SYSTEM withstands 3 of 4<br />
scenarios, and falls under threshold in the last, more<br />
severe scenario:<br />
Credit risk scenario: 21,33%<br />
Macro-all scenario: 22,72%<br />
Macro-crisis scenario: 19,06%<br />
Macro-filtered scenario: 13,93%<br />
Stress test<br />
results After the applied shocks, BIGBANK withstands 3 of 4<br />
scenarios, and falls under threshold in the last, more<br />
severe scenario:<br />
Credit risk scenario: 17,10%<br />
Macro-all scenario: 19,66%<br />
Macro-crisis scenario: 17,24%<br />
Macro-filtered scenario: 13,02%<br />
8% raise in<br />
own funds will<br />
allow bank &<br />
system to<br />
withstand<br />
shocks
Contagion effect<br />
(to other banks<br />
and/or financial<br />
institutions)<br />
Concentration to<br />
economic sectors<br />
Other facts<br />
to be<br />
considered<br />
Unemployment<br />
Interest rates
Specific<br />
questions<br />
✓Due to its size and large lending<br />
activity BIGBANK is a large contributor<br />
to the overall risk level of the system<br />
✓Application of the additional<br />
prudential tools depends on the<br />
financial health of the entire financial<br />
system, but in order to limit<br />
BIGBANK’s contribution to overall risk<br />
an OSII buffer can be applied.