CCB successfully finished asset quality review and stress test exercise conducted by ECB
On 26th of July, 2019 Central cooperative bank successfully finished the comprehensive assessment (CA), comprising an asset quality review (AQR) and a stress test, conducted by the European Central Bank in the context of Bulgaria’s request for establishing close cooperation between the ECB and the BNB in response to the Republic of Bulgaria intentions to join the ERM II.
In November 2018 – July 2019 European Central Bank conducted Asset quality review and Stress test of several banks in Bulgaria. The AQR and the Stress test were conducted under the Asset Quality Review Phase 2 Manual and 2018 EU-Wide Stress Test Methodological note, applied commonly in European Union supervisory exercises and the results of the banks are directly comparable.
In July 2019 Central cooperative bank AD successfully completed 2018 BG CAST. The conducted AQR and Stress test, without any doubt concluded the adequate governance of CCB, successfully meeting the ECB requirements. The CCB fully loaded CET1 ratio at the end of the 3-year horizon of the Stress test is 17.54% in the Base scenario and 7.97% in the Adverse scenario.
The CCB results are far above the ECB minimal capital thresholds and no need of applying any capital measures was identified.
The official press release and detailed outcome of the CA are published on the web page of European banking authority: