The RAS stands for the risk appetite of the Bank. We define it by setting high-level and specific limits. Setting and monitoring of the risk appetite (RAS parameters) is an integral part of the planning process and concentration risk management at the Bank.
RAS limits on credit risk:
- portfolio limits,
- limits on portfolio and new production risk parameters, and
- concentration limits, including limits on mortgage-backed credit exposures under PFSA Recommendation S.
Besides RAS limits, we set at the Bank credit risk limits for individual areas, business lines and products as well as transactional limits which are accepted by the competent credit approver. Further, we set internal concentration limits on the sectors and collateral accepted and monitor on an ongoing basis the concentration in the geographical areas of our business. We monitor and report the current utilisation of RAS limits during the year, on a monthly basis.