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ECB extends deadline for Banca Carige to file NPL plan

The ECB postponed the deadline for Banca Carige SpA to submit a plan to reduce bad loans to Feb. 28, 2017, from Jan. 31, 2017.

The central bank accepted Banca Carige's comments on the former's draft decision, requiring from the bank different coverage ratios for bad loans, unlikely-to-pay exposures and past due exposures as opposed to a single coverage ratio for all NPLs. The corresponding coverage ratios should be 63%, 32% and 18%.

Following the 2016 Supervisory Review and Evaluation Process, the ECB set Banca Carige's minimum consolidated SREP capital requirement at 11.25% as of Jan. 1, 2017. The ratio could be reviewed after the NPL reduction. The bank is also subject to a minimum overall capital requirement of 12.50%.

The bank is required to maintain a consolidated minimum common equity Tier 1 ratio of 9%, comprising a CET1 minimum requirement of 4.5%, an additional own funds requirement of 3.25% and a combined buffer requirement of 1.25%. In addition, the bank is recommended to comply with the Pillar 2 capital guidance of holding CET1 capital of 2.25% over and above the aforementioned minimum ratio.

As of Sept. 30, 2016, the bank's CET1 ratio was 12.3%, whereas the total capital ratio was 14.2%.

Also, the bank is required to maintain a consolidated minimum liquidity coverage ratio of 90% at all times. The ratio as of Sept. 30 was 137%.