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Capital Stability

Banca Finnat | Capital Stability| Institutional Site

Banca Finnat

Banca Finnat | Capital Stability| Institutional Site

What is the CET1 ratio?
When evaluating the capital stability of a bank, the so-called CET1 Ratio (the acronym of Common Equity Tier 1) is the most important indicator of its financial strength. The ratio, expressed as a percentage, is a measurement of a bank’s equity capital compared with its total risk-weighted assets.

But what does this mean in practice? The CET1 ratio provides a measurement of the resources with which the bank guarantees the loans it grants to its clients indicates and the risks represented by its non-performing loans.

CET1 ratio: the ECB requires a minimum threshold of 10.5% for Italian banks.

The ECB and EU authorities have decided that the ratio should be at least 8% in all countries, failing which the bank is placed under compulsory administration. Recently, this has been the case for a number of banks in Italy.

Each EU-member country has been assigned a minimum CET1 ratio for its banks. The general ratio assigned to Italian banks is 10.5%.

What ranking does BANCA FINNAT have in Italy?

Banca Finnat features a CET1 ratio of about 30%, which is incredibly high, considering that the average figure in Italy, at the end of June 2016, was 12.4%.


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Banca Finnat Euramerica S.p.A.
Registered office in Piazza del Gesù n.49, (IT-00198) Rome, Italy
Share capital € 72,576,000.00 fully paid-in, represented by 362,880,000 ordinary shares
Enrolled in the Banking Register under No. 5369
Holding Company of the Banca Finnat Euramerica Italian banking group,
enrolled in the Banca d’Italia’s Register of banking groups No. 5557
Enrolled in the Rome Companies’ Register Tax Code No. 00168220069 - VAT No. 0085601004 - SDI recipient code: IOPVBGU
R.E.A. n.444286 – ABI 3087.4 – BIC code: FNATITRRXXX – LEI code: 815600835712F7BA2869
Member of the National Interbank Deposit Guarantee Fund
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