Capital risk is defined as the risk of failing to ensure an appropriate level and structure of own funds, with respect to the scale of PKO Bank Polski SA’s operations and risk exposure and, consequently, insufficient for the absorption of unexpected losses, taking into account development plans and extreme situations.
Therefore, the objective of managing the capital risk is to ensure an appropriate level and structure of own funds, with respect to the scale of the operations and risk exposure of PKO Bank Polski SA and the PKO Bank Polski SA Group, taking into account of the assumptions behind PKO Bank Polski SA’s dividend policy as well as supervisory instructions and recommendations concerning capital adequacy.
The capital risk level for PKO Bank Polski SA and the PKO Bank Polski SA Group is determined based on levels of values of capital adequacy measures, i.e.: the total capital ratio, core-capital ratio Tier 1, the relation of equity to internal capital and leverage ratio.
In the case of high level of capital risk, the Bank takes actions to capital adequacy measures reach the safe level, complying with internal standards of PKO Bank Polski SA and supervisory recommendations concerning capital adequacy.