Catalina Araya's questions to GRUPO FINANCIERO GALICIA (GGAL) leadership • Q1 2016
Question
Catalina Araya inquired about the regulatory changes compressing Tier 1 and total capital ratios, the potential future impact of Basel III, and the minimum capital level the bank would consider before taking strategic action.
Answer
Pablo Firvida, Investor Relations, explained that the capital ratio drop was due to calculation changes and a smaller portion of a subordinated bond being admitted as Tier II capital. He clarified that the ratio is expected to grow by 2 percentage points by year-end without new issuances and that most material Basel III changes have already been implemented.