Capital adequacy shows those capital resources of the Group and the Bank needed to cover the credit and market risks arising from asset-side and off-balance sheet positions and operational risks. In 2008 new European Union capital adequacy calculation regulation (Basel II) came into force. The Group and the Bank uses the standardized approach to calculate minimum capital charge for credit and market risks and basic indicator approach – for operational risk. As at 30 September 2009 the capital adequacy ratios of the Group and the Bank calculated according to the Financial and Capital Market Commission were 11.4% ( 31 December 2008 – 9.6% ) which exceeded the minimum of 8%.

Overview on Capital Adequacy as to 31.03.2010 (thousands LVL)