...Key Metrics Stressed: Fitch Ratings' analysis shows that the profitability and increased capital buffers of the largest Colombian banks following the Basel III implementation schedule will provide a significant cushion against potential marked deterioration in Fitch Core Capital (FCC) ratios. Fitch stress-tested Colombia's five largest banks (Bancolombia S.A, Banco de Bogotß S.A, Davivienda S.A, BBVA Colombia S.A. and Banco de Occidente S.A.), which comprised about 70% of total system assets as of June 2019. Implementation Schedule Benefits Metrics: Estimates take into account the Basel III Implementation schedule for the Colombian banking system. The changes included a reduction in risk-weighted asset (RWA) density and an operational risk charge (ORC) for 2021. While the reduction in RWA density should benefit FCC to RWA metrics by around 276 bps, we expect the ORC to moderate this effect by around 158 bps in 2021. On average, capital metrics should increase by around 100 bps above 2018...
