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2018 Pillar 3 Disclosures
Capital
Minimum capital requirements for foreign
exchange
The table below shows the amount of the bank’s capital requirements at 31 December 2018 for
exchange rate risk and gold position risk. The calculation is performed in accordance with the
standard method, as defined in Part Three, Title IV, Chapter 3 of Regulation (EU) No. 575/2013.
Capital requirements for foreign exchange risk and gold position risk
3,000
Thousands of euros.
Capital requirements for operational risk
The table below shows the amount of capital requirements for operational risk at 31 December
2018. The calculation was performed with the standard method, as defined in Part Three, Title III,
Chapter 3 of Regulation (EU) No. 575/2013.
Capital Requirements for Operational Risk
41,542
Thousands of euros.
Procedures applied in order to assess of
internal capital adequacy
The Cecabank Group has implemented an internal assessment process which comprises a
quantitative and qualitative assessment of its internal governance structure, its systems of
identification, measurement and aggregation of risks incurred in the pursuit of its activities and
the control environment. The fundamental aim of this review is to assess the adequacy of the
available capital, taking into consideration the control framework and risk management, the
economic environment and its strategic business plan.
The procedure also serves to ensure that risks lie within the limits which the Board and senior
management establish in order to define the risk profile.
This procedure is aligned with the “Guidelines on Internal Capital Adequacy Assessment
Process” (hereinafter ICAAP Guidelines) published by the Bank of Spain, providing the basis for
drafting the “Internal Capital and Liquidity Assessment Report” (hereinafter, the ICLAR), which
is presented each year to the supervisory authority.
For the purposes of this Report, it was decided to generally employ the simplified options
proposed by the supervisor in the aforementioned ICAAP Guidelines, which generate prudent
additional capital requirements and facilitate the supervisory review process. Nonetheless,
the bank has complemented those additional needs for the case of operational risk and
concentration risk. In such cases, the application of a more rigorous model that is aligned
with the business of the bank produces more demanding capital needs than those defined by
the supervisor.
3.2.3
3.2.4
3.2.5
3 | 3.2