Íslandsbanki publishes a Pillar 3 Report
Íslandsbanki has published a Pillar 3 Report for the year 2015. The report provides information to market participants and other stakeholders that facilitate a better understanding of the Bank’s risk profile and capital adequacy. The report shows that at year-end 2015 the Bank was in compliance with internal and external risk limits and the liquidity and equity position remain strong.
The credit quality of the loan book continues to increase
Problem loans, i.e. loans that are either impaired or more than 90 days past due, are down from 3.5% to 2.2%. Compared to statistics from the European Banking Authority (EBA), Íslandsbanki’s problem loans ratio ranks among the 25% best of European banks.
Revision of the Bank’s capital targets
Íslandsbanki´s Board of Directors has decided to increase the Bank´s minimum capital ratio from 18% to 23% for the near and medium term. The increase is based on more conservative requirements set forth by the Icelandic regulator and on the Bank’s view that it is prudent to retain a sizable strategic capital buffer through the near-term steps being taken towards the lifting of capital controls in Iceland.
Imbalances remain modest
Imbalances in the Bank’s balance sheet continue to be managed within reasonably tight limits, leaving the Bank only mildly exposed to unexpected fluctuations in exchange rates, interest rates and inflation.
Sverrir Örn Þorvaldsson, Chief Risk Officer:
“Íslandsbanki is constantly improving its risk and capital management infrastructure. The Pillar 3 Report provides comprehensive information on the risk position of Íslandsbanki and how the Bank manages its risk. The report also gives information on the regulatory environment and its development, particularly in Iceland. I hope that the report is accessible both for those looking for a bit of insight into how the Bank measures and manages risk, as well as experts desiring a deeper analytical basis to understand the Bank’s risk position”