November 7 (SeeNews) - Slovenian lender Abanka says it has successfully passed the comprehensive assessment carried out by the European Central Bank (ECB), under both the baseline and adverse scenarios.
The assessment of the bank was carried out from March to October 2016, and included an asset quality review (AQR) and stress tests, Abanka said in a filing with the Ljubljana bourse on Friday.
"The threshold value of the capital adequacy ratio (CET1) under the baseline scenario was 8.0%, while Abanka achieved a ratio of 23.8%. The threshold value of the capital adequacy ratio (CET1) under the adverse scenario was 5.5%, while Abanka achieved a ratio of 10.0%", the bank noted.
Abanka was recognised as a systemically important bank, and included in the ECB’s comprehensive assessments, following the successful merger with Banka Celje in October 2015 which saw Abanka become the second largest bank in the Slovenian banking system.
"Abanka, a capitally sound and secure bank, has continued with operational merger processes in 2016. Those processes were largely completed in October. Through the successful implementation of activities defined in its strategy, the bank is fulfilling its vision to become the best bank in the eyes of customers, employees and investors", it also said.
The ECB conducted a comprehensive assessment from March to November 2016 on four banks - Slovenia's Abanka, Latvia's Akciju sabiedriba “Rietumu Banka”, Italy's Banca Mediolanum S.p.A. and Ireland's Citibank Europe plc.
In 2013, the Slovenian government had to step in and recapitalise Abanka along with two other lenders, narrowly avoiding an international bailout. In October 2015, Abanka and its state-owned peer Banka Celje merged. The latter ceased to exist as an independent legal entity, whilst Abanka as the acquiring company and as the universal legal successor entered all legal relations concerning Banka Celje.