The Bank of Lithuania has determined additional capital requirements for “Revolut Bank”, according to ELTA.
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“The Board of the Bank of Lithuania has reviewed the results of the Supervisory Review and Evaluation Process (SREP) of Revolut Bank. It included a capital assessment (in accordance with the existing capital adequacy requirements) in all areas of this bank’s operations in which it faces significant risks, both individually and at the highest level of consolidation Summarizing the results of the SREP and evaluating all the negative factors that could affect the capital of “Revolut Bank”, the Board of the Bank of Lithuania determined for this bank an additional capital requirement of 3.7% of the total amount of risk-weighted risk transactions, applied both at the individual level and at the highest level of consolidation. ,» said the report.
“The Supervisory Review and Evaluation Process (SREP) is a regular procedure that the Bank of Lithuania carries out for banks that operate in the market and are supervised by the regulator. During it, the financial institution’s business model, size, number of clients, assets under management, capital adequacy and many other factors are evaluated. It is natural that as the institution grows and becomes a systemically important institution, the requirements and regulatory supervision also increase. Already now, we not only meet the updated capital requirements, but also exceed them”, representatives of “Revolut Bank” comment on the assessment of the Bank of Lithuania.
Supervisory authorities regularly assess and calculate the risks of each bank. This core activity is referred to as the Supervisory Review and Evaluation Process (abbreviated as SREP). It summarizes all the facts found by the supervisory authorities in the relevant year and specifies the tasks that the bank must perform.
More specifically, the SREP allows you to find out what the bank’s position is in terms of capital requirements and how it manages risks. The SREP decision, which the supervisory authority sends to the bank after the end of the process, defines the main objectives for solving the identified problems. The bank must fix these problems within the specified time.
“Revolut Bank” belongs to the holding company “Revolut Holdings Europe” founded in Lithuania.
