BOV passes EU stress test with ‘relative comfort’

Bank of Valletta p.l.c, has officially passed this year’s European Banking Authority’s (EBA) stress test with “relative comfort”.

In a company statement BOV said that the results show that the bank enjoys strong capital buffers.

When the Bank’s consolidated balance sheet and income statement were stressed in

accordance with the parameters set by the EBA and the ECB, its Core Tier 1 ratio,

which is an international indicator of balance sheet strength, decreased by 0.1 percentage points, reaching 10.4%. This is more than double both the 5% “pass mark” set for this exercise and the statutory minimum ratio of 4%.

The Board noted that the outcome of the stress test was a good result for BOV, and

represented the latest external confirmation and endorsement of the strength and

resilience of BOV and its balance sheet, even under extreme conditions.

BOV has passed this year’s stress test with relative comfort, as it had done a year ago.

The Bank’s strength is the result of prudent capital management, a cautious risk appetite

and the adoption some years ago of a responsible and sustainable dividend payout

policy.

The Board also noted that stress tests on capital and liquidity buffers are a regular

part of the Bank’s internal risk management processes, and that capital buffers are

monitored continuously by the Board and by executive management.

avatar
Joseph MELI
so now we can all sleep well and relax.These stress tests must be really thorough and demanding as the Irish Banks passed them all with flying colours-just before they went belly-up!It is the customers and investors of this consumer -friendly bank that need stress tets!
avatar
If BOV with its mismanagement of the investment fund managed to get through better than other European banks, image what the other banks are like.