Hoist Finance capital positively impacted by reduced risk weights
The European Commission has published the expected amendments to the regulatory technical standards as regards the specification of the calculation of credit risk adjustments. This is positive for Hoist Finance from a capital adequacy perspective. As previously communicated, the reduced risk weight translates to an approximate increase in Hoist Finance’s Common Equity Tier 1 capital ratio (CET 1) of 260 basis points. Changes include that purchase price discounts are treated as credit risk adjustments equivalent to write-downs and will effectively decrease the risk weight applicable to