UniCredit Bulbank becomes the first bank in Bulgaria allowed to apply improved operational risk measurement method

UniCredit Bulbank becomes the first bank in Bulgaria allowed to apply improved operational risk measurement method

Several month after receiving permission to use an Internal rating based approach under Basel II for calculation of the capital requirements for credit risk, UniCredit Bulbank became the first bank in Bulgaria to be officially approved to use an Improved approach for calculation of its capital requirements for operational risk.

The permission was granted after detailed control checks of UniCredit Bulbank's overall operational risk system at Group/local level, as well as by BNB, conducted in 2010. The checks revealed that the Bank fulfills the requirements of the EU Capital Adequacy Directive and the local regulatory requirements according to BNB Regulation №8.

"This is the most advanced method for calculation of the regulatory capital requirement for operational risk. The permission for use of the Improved method confirms the high level of operational risk management in UniCredit Bulbank, with clearly defined roles and responsibilities, as well as the well established practices regarding risk organization and control in the Bank", Aleksander Krustev, Chief Risk Officer of UniCredit Bulbank, explained.

In the beginning of the year UniCredit Bulbank became the first bank in this country to receive permission to use Internal Rating Based Approach under Basel II for calculation of the credit risk capital requirements. The scope of application includes exposures to bank institutions and corporate clients.

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