Länsförsäkringar Bank Group applies the Internal Ratings Based (IRB) approach. The advanced IRB approach is applied to household risk exposure. The basic IRB Approach is applied to agricultural lending and the Standardised Approach to other risk exposure for the capital requirements.
The bank is monitoring the Capital Requirements Directive CRD IV and assesses that the Bank Group has a solid basis on which to meet currently known requirements.
The target level for the Tier 1 ratio is 12% under Basel II. The target level can vary + /- 0.5 percentage points.
As of March 31, 2012
- the Tier 1 capital strengthened to SEK 5,873 M (5,401)
- the Tier 1 ratio totalled 12.1% (11.8) according to Basel II
- the Core Tier 1 capital amounted to SEK 5,583 M (5,111)
- the Core Tier 1 ratio was 11.5% (11.2)
- the capital base strengthened to SEK 6,792 M (6,140)
- the capital adequacy ratio was 14.0% (13.5) according to Basel II