To
OMX The Nordic Exchange Copenhagen
Executive Board
Parallelvej 17
DK-2800 Kgs. Lyngby
www.rd.dk
Telephone +45 7012 5300
Telefax +45 4514 9024
26 November 2007
Announcement number 54 - 2007
Realkredit Danmark receives IRB approval
The Danish Financial Supervisory Authority (FSA) has permitted the Realkredit
Danmark Group to apply the advanced internal ratings-based (IRB) approach to
calculate credit risk under the new capital requirements directive (CRD). The
approval will take effect on January 1, 2008.
The approval will considerably reduce the Realkredit Danmark Group's minimum
capital requirement (Pillar I). Applying the IRB approach to the Realkredit
Danmark Group's financial results for the first nine months of 2007 would
reduce risk-weighted assets (Pillar I) by 85%, on full implementation in 2010,
of which 10 percentage points would be recognised in 2008 under the
transitional provisions of CRD.
The capital target of the Group will be based on the minimum capital
requirement under Pillar I and further capital requirements under Pillar II,
including stress tests and rating ambitions. The Annual Report for 2007 will
explain the effect of the new requirements on the Group's capital management
and financial targets.
The CRD sets out the requirements for calculating risk-weighted assets. The
Advanced IRB approach is the most advanced option among the three approaches
offered by the directive. This approach may be put into use as of 2008.
Yours faithfully,
The Executive Board
Any additional questions should be addressed to Sven Holm, Chairman of the
Executive Board, tel. +45 45 13 20 81.
