73. Leverage ratio


The Group calculates the leverage ratio as one of its capital adequacy measures.

The objective of excessive leverage risk management is to ensure an appropriate relationship between the amount of the core capital (Tier 1) and the total of on-balance sheet assets and off-balance sheet liabilities granted by the Group. The way of managing the risk of excessive leverage has been specified in the internal capital adequacy regulations.

For the purpose of measuring the risk of excessive leverage, the Group calculates the leverage ratio as the Tier 1 measure divided by the total exposure measure and expressed as a percentage. The leverage ratio as at 31 December 2018 and 31 December 2017 was calculated in relation to Tier 1 capital and remained above internal and external limits, as well as above the minimum levels as recommended by the Polish Financial Supervision Authority.

Annual report

To maintain the leverage ratio at an acceptable level, the Group set up a strategic tolerance limit and a threshold for the ratio and they are regularly monitored and verified periodically.

The exposure for the calculation of the leverage ratio within the meaning assigned by the CRR Regulation.

Laverage ratio exposures specified in CRR
31.12.2018 31.12.2017
Total capital and exposure measure
Tier 1 capital 35 150 32 326
Total exposure measure comprising the leverage ratio 336 797 306 830
Leverage ratio
Leverage ratio 10.44% 10.54%

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