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SpareBank 1 BV expects small losses for 2018


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SpareBank 1 BV expects small losses for 2018

Norwegian bank SpareBank 1 BV said the Norwegian Financial Supervisory Authority rejected its request to use the advanced internal ratings-based method to calculate regulatory capital coverage for credit risk.

The bank made its request in May 2015, asking to use bespoke internal models to assign risk weights to loans. However, the FSA said SpareBank 1 BV does not meet the requirements for the authorization of the methodology, because its corporate portfolio is too small.

SpareBank 1 BV said the use of the internal ratings-based models remains important to the credit area's day-to-day operation, and it noted that it uses the standard method for credit risk and the basic method for operational risk.

The bank also reported after-tax profit of 385.0 million Norwegian kroner in the first half, although it noted several one-off factors that boosted the figure.

As of Aug. 9, US$1 was equivalent to 8.28 Norwegian kroner.