P.
60
2018 Pillar 3 Disclosures
Leverage
Another factor that demonstrates Cecabank’s level of solvency is the leverage ratio. As shown
below, the calculation made for December 2018 was 11.87%.
This ratio was established in Basel III as a not-sensitive-to-risk measure, aiming to limit the
possibility of excessively increasing companies’ balance sheets in relation to their available
capital. Its calculation is defined as the ratio between the eligible Tier 1 capital and a Non-risk
weighted measurement of exposure calculated in accordance with the definition established in
the EU Delegated Regulation 62/2015.
The following table shows the elements taken into consideration in the leverage ratio calculated
at 31 December 2018. Under the fully-loaded approach (coinciding with the phase-in calculation),
since the transition schedule envisaged for carrying out certain regulatory adjustments in the
calculation of the capital, and which the bank has been carrying out, was completed in December
2017. The bank is not applying the transitional provisions set forth in Regulation (EU) No.
2395/2017 to mitigate the impact on capital of the introduction of IFRS 9.
2018
2017
Tier I
791,312
743,692
Total Exposure
6,667,772
6,791,911
Derivatives
132,206
131,976
Securities lending and financing
75,546
175,709
Off-balance sheet items
95,144
289,910
Other assets
6,583,244
6,435,086
Adjustments
- 218,368
- 240,770
Leverage ratio
11.87%
10.95%
Thousands of euros.
Controlling the risk of leverage is incorporated within the standard monitoring of risk parameters.
There is a limit that is monitored based on the information received by the Risk Committee and
the Assets and Liabilities Committee in order to guarantee that the ratio comfortably exceeds the
level that is taken as the reference value (3%) and is currently pending its definitive incorporation
into the solvency regulations.
Monitoring is performed alongside the supervision of solvency levels and it includes an assessment
of both the bank’s exposure and available own funds.
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