THE FINANCIAL Regulator has waived capital rules for EBS, allowing the building society to fall below the threshold dictating the minimum amount of capital that a financial institution must hold in reserve.

EBS said in a statement that the regulator has granted it a temporary derogation until May 31st, allowing it to hold less than the minimum core tier 1 capital ratio of 4 per cent.

The building society said the need for the temporary derogation arose from the transfer of assets to the National Asset Management Agency (Nama) occurring before the recapitalisation of the EBS by Minister for Finance.

“In light of the Minister’s confirmed support and the commitment to provide an appropriate level of capital to the EBS and the fact that absent the derogation, EBS would be in breach of minimum regulatory capital requirements until such time as the capital referred to above is provided by the Minister for Finance, the Financial Regulator has granted the derogation,” said the building society.