The Slovenia Times

Unicredit Slovenia subsidiary passes ECB test

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The bank's Common Equity Tier 1 capital (CET1) after the baseline scenario would reach 18.36% in 2017, which is substantially above the threshold of 8%.

Under the adverse scenario, the bank's while CET1 ratio would be 14.17%, to threshold to pass being 5.5%.

The assessments were made based on a comparison with the initial CET1 ratio of 17.59 at the end of 2014.

"The results of the comprehensive assessment have shown yet again that Unicredit banka Slovenija is one of the most stable banks in Europe with a solid capital base," the bank said in a press release.

It added that the ECB confirmed the bank's prudent and conservative approach to the formation of impairments and provisions, with the results reflecting the stability of its total assets under potential adverse scenarios.

Satisfaction with the results was also expressed by Unicredit banka Slovenija chairman Stefan Vavti, who attributed them to the diligence in the bank's work in a bid to remain a market leader.

"The capital adequacy ratio that is above 14% [under the adverse scenario] gives all our major stakeholders important information about stability, expertise and responsibility of the bank," he said.

The review of a total of eight European banks comes after the ECB review of 130 systemically important European banks last year, including Slovenia's NLB, NKBM and SID bank.

While all three Slovenian banks passed muster under the baseline scenario, NLB and NKBM were found to have a small capital shortfall under the adverse scenario.

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