All-Stars

SYSTEM & BIGBANK
Group 1

✓ Floralia ‘s banking sector consists of 11 banks,
of which 4 are systemically important
✓ On average banking system is well capitalized
(27% CAR)
✓ The level of NPLs is quite comfortable
(8,72%)
Description
✓ BIGBANK if the biggest bank of the Floralia’s
banking sector
✓ BIGBANK is a systemic bank
✓ BIGBANK is well capitalized (23% CAR), but situated
below the median
✓ The level of NPLs is quite low (4,98%), high
concentration of NPLs in 100% (3,5%)
✓ BIGBANK’s loan portfolio accounts 34% of total
loans of the system
✓ Main activity of the bank - lending

Macroeconomic factors
with the most impact:
1) FX
2) CPI
3) Industrial production
After the applied shocks, SYSTEM withstands 3 of 4
scenarios, and falls under threshold in the last, more
severe scenario:
Credit risk scenario: 21,33%
Macro-all scenario: 22,72%
Macro-crisis scenario: 19,06%
Macro-filtered scenario: 13,93%
Stress test
results After the applied shocks, BIGBANK withstands 3 of 4
scenarios, and falls under threshold in the last, more
severe scenario:
Credit risk scenario: 17,10%
Macro-all scenario: 19,66%
Macro-crisis scenario: 17,24%
Macro-filtered scenario: 13,02%
8% raise in
own funds will
allow bank &
system to
withstand
shocks

Contagion effect
(to other banks
and/or financial
institutions)
Concentration to
economic sectors
Other facts
to be
considered
Unemployment
Interest rates

Specific
questions
✓Due to its size and large lending
activity BIGBANK is a large contributor
to the overall risk level of the system
✓Application of the additional
prudential tools depends on the
financial health of the entire financial
system, but in order to limit
BIGBANK’s contribution to overall risk
an OSII buffer can be applied.