Handelsbanken's UK subsidiary,Handelsbanken plc , calculates the capital requirement for credit risk with the application of the standardised approach. At Group level,Handelsbanken applies the internal ratings-based approach to calculate the credit requirement for credit risk, including for those parts of its volumes which are reported byHandelsbanken plc . This is a requirement under the licence granted by theSwedish Financial Supervisory Authority .The Swedish Financial Supervisory Authority has decided that, from1 January 2021 , the Bank is also to use the standardised approach at Group level, when calculating the capital requirement for credit risk atHandelsbanken plc . The risk exposure amount (REA) at the Bank will consequently increase by approximatelySEK 65 billion in conjunction with the introduction of the new method. As at30 June 2020 , the total REA was aroundSEK 705 billion . The common equity tier 1 ratio was 18.7 per cent, while the common equity tier 1 capital requirement communicated to the Bank by theSwedish Financial Supervisory Authority was 14.0 per cent. The Bank does not yet know what capital requirement theSwedish Financial Supervisory Authority will assign to theUK volumes at Group level, for which reason the impact of this decision on the common equity tier 1 ratio and total capital ratio at Group level will be announced at a later date. However, the Bank assesses that following this change, and in combination with other, previously announced changes, the common equity tier 1 ratio as at30 June 2020 , pro forma, remains over the target ratio range. For further information, please contact: Lars Höglund, Head of Investor Relations, +46 70 345 51 70 This information is of the type thatHandelsbanken is obliged to make public pursuant to the EU Market Abuse Regulation, the Swedish Securities Markets Act and the Swedish Financial Instruments Trading Act. The information was submitted for publication through the agency of the contact person set out above, at13:00 CET on15 September 2020 . For more information aboutHandelsbanken , see: www.handelsbanken.com
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