The European Central Bank (ECB) has completed its Comprehensive Assessment of Luminor Bank, which comprised of an Asset Quality Review (AQR) and a stress test.
The results of the Comprehensive Assessment confirm Luminor’s resilience, robust asset quality and capitalization.
ECB carries out financial health checks for the banks that it supervises directly. These comprehensive assessments help to ensure that banks are adequately capitalised and can withstand macroeconomic and financial shocks. The Comprehensive Assessment of Luminor was carried out in cooperation with Estonian Finantsinspektsioon.
The Asset Quality Review was performed on Luminor’s financial position at the end of 2019. The Stress Test applied the 2020 European Banking Association Stress Test methodology on the same starting point, incorporating regulatory and governmental relief measures to account for COVID-19.
Luminor Bank CEO, Peter Bosek, said: “I am pleased by the results of such a comprehensive review of Luminor’s financial standing and risk governance. We will continue to use our strong financial standing for the benefit of our customers.”
ECB published the results from Comprehensive Assessment on 9 July and they are available here.