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2018 Pillar 3 Disclosures
Credit and dilution risks
Cecabank’s activity as a wholesale bank means the management of risks associated with
concentration is particularly relevant. At the close of 2018 no positions exceeded the threshold to
be considered as a large exposure. Furthermore, the 10 greatest exposures, without taking into
account public debt and other exposures not included in the large exposure calculation, represent
around 40% of the total.
This exposure corresponds to some of the main Spanish banking groups, and large Spanish
corporations, including the insurance sector. The distribution according to credit agency ratings is
presented below:
Level
Rating
% 2018
1 and 2
AAA/AA/A
20.2%
3
BBB
52.1%
Lower than 3
BB-B
16.3%
Not rated
-
11.4%
Total
100.0%
Cecabank’s level of specialisation can be seen at both sectoral and geographical levels. In
terms of the relevant exposure for the purpose of determining major risks, financial institutions
accounted for 56.3% and those located in the Eurozone, including Spain, stood at 89.5%.
In the assessment of the degree of sector concentration the exposure is considered to be
maintained within a highly regulated and supervised sector. This aspect mitigates the level of
sectoral specialisation. Irrespective of this, and as shown in section 3.2.5, the bank applies
prudent criteria to cover these risks under the Pillar 2 framework, with the appropriate levels
of capital.
Concentration risk
4 | 4.5