Czech Republic-based lender Komerční banka a. s. has been told by the Czech central bank that it must hold a capital ratio on a consolidated basis of at least 9.6%, effective March 1.
This is an increase of 0.1 percentage point compared to the consolidated total capital ratio requirement of at least 9.5% for 2018.
The Czech bank is also required to maintain a Tier 1 core capital ratio of 4.5%, and a Tier 1 capital ratio of 6%. The Pillar 2 requirement was set at 1.6% which needs to be covered fully by Tier 1 capital. Core Tier 1 capital should cover 75% of the Pillar 2 requirement.
Komerční banka must also maintain a capital conservation buffer of 2.5%, a countercyclical buffer of 1.25% (rising to 1.75% by Jan. 1, 2020) and a capital systemic buffer of 3.0%.
The bank's overall capital requirement, therefore, stands at 16.35%, effective March 1.
Its actual consolidated capital adequacy stood at 18.5% at Dec. 31, 2018.
Komerční banka is a subsidiary of Société Générale SA.