Tracking Georgia's Economic Recovery
STRONG CAPITAL ADEQUACY POSITION
NBG MEASURES AS A RESPONSE TO COVID-19
NBG's COVID-19 Supervisory Plan effective since March 2020:
Combined buffer - the conservation buffer requirement of 2.5% of risk-
weighted assets has been reduced to 0% indefinitely;
Pillar 2 requirements:
Currency induced credit risk buffer (CICR) requirement reduced by
2/3rds indefinitely;
The phase-in of additional credit portfolio concentration risk buffer
(HHI) and net GRAPE buffer requirements on Common Equity Tier 1
(CET1) and Tier 1 capital, planned at the end of March 2020, has
been postponed indefinitely;
The possibility of fully or partially releasing the remaining
requirements of Pillar 2 buffers (HHI, CICR, net GRAPE), if
necessary, remains open.
Capital distribution during the period the banks are allowed to
partially or fully use the Pillar 2 and conservation buffers, the banks are
restricted to make capital distribution in any form;
General loan loss provisioning relating to COVID-19. The Bank's actual
capital adequacy position at 30 June 2020 considers the additional
general provision of GEL 400 million (approximately 3.3% of the Bank's
lending portfolio subject to provision under the local regulatory
accounting standards) booked under the Bank's local regulatory
accounting basis in March 2020, which is used for calculation of the
Bank's capital ratios, reflecting NBG's expectation of estimated credit
losses on the Bank's lending book for the whole economic cycle, given
current economic expectations.
CAPITAL ADEQUACY RATIOS
16.8%
18.1%
13.3%
13.6%
11.1%
Sep-19
27
17.4%
17.3%
15.3%
12.0%
12.0%
10.6%
9.9%
9.9%
11.5%
8.3%
Dec-19
Mar-20
Jun-20
Sep-20
Tier I Capital Adequacy Ratio
CET1 Capital Adequacy Ratio
■Total Capital Adequacy Ratio
REGULATORY REQUIREMENTS
17.1%
16.1%
11.6%
12.2%
9.5%
10.1%
Sep-19
13.3%
13.3%
13.2%
8.7%
8.7%
8.7%
6.9%
6.9%
6.9%
Dec-19
Mar-20
Jun-20
Sep-20
CET1 Capital Adequacy Ratio
Total Capital Adequacy Ratio
Tier I Capital Adequacy RatioView entire presentation