Eesti Pank designated Coop Pank AS among systemically important credit institutions
With its decision of 28.11.2024, Eesti Pank designated Coop Pank AS among systemically important credit institutions.
Eesti Pank justifies its decision as follows: "The significance of Coop Pank AS in the Estonian financial system has grown steadily in recent years. In particular, the bank has increased its market share, in loans issued to Estonian households and companies, as well as in deposits received from them. For both indicators, the bank's market share was over 5% at the end of 2023."
The decision entails an obligation for Coop Pank to maintain an additional capital buffer of 0.5 percent for a systemically important credit institution.
According to Paavo Truu, CFO of Coop Pank, becoming a systemically important bank is recognition of the growth in business volumes achieved by Coop Pank in recent years. The additional capital buffer further strengthens Coop Pank's capitalization and increases the bank's resilience in possible crises. Coop Pank has now achieved a significant market share in the Estonian banking market, but the bank's strategy foresees continued growth in the coming years.
Coop Pank, based on Estonian capital, is one of the five universal banks operating in Estonia. The number of clients using Coop Pank for their daily banking reached 203 900. Coop Pank aims to put the synergy generated by the interaction of retail business and banking to good use and to bring everyday banking services closer to people’s homes. The strategic shareholder of the bank is the domestic retail chain Coop Eesti, comprising of 320 stores.
Additional information:
Paavo Truu
CFO
Phone: 5160 231
E-mail: paavo.truu@cooppank.ee
