Bigbank AS Unveils Revised Strategy for Future Growth

Author: Logan Wright Updated: 08-29-2025 10:15 AM

Bigbank AS Strategy Update for Growth

Recently, the Supervisory Board of Bigbank AS announced an important update to the bank's strategic direction for the upcoming years. This revision is set for the period 2022 to 2026, aiming to align the bank's operations with evolving regulatory requirements and market conditions.

Implementation of Internal Ratings-Based Models

Bigbank had begun a project focused on implementing internal ratings-based (IRB) models. This initiative was designed to reduce the capital requirement for credit risk and enhance capital management efficiency. However, due to new regulatory changes from the European Union, the advantages of using the IRB approach have notably decreased compared to standardized methods.

Regulatory Changes Impact

The introduction of Regulation (EU) 2024/1623, with an expected full implementation by 2030, has reshaped the landscape for risk management in the banking sector. Consequently, the bank has decided to suspend its plans to pursue further implementation of its IRB project. This decision reflects the need to adapt to the current requirements and to seek alternative ways to manage capital effectively.

Focus on Loan Portfolio Quality

Despite suspending the IRB initiative, Bigbank AS remains committed to maintaining high standards in loan portfolio quality. According to Mart Veskimägi, a member of the Management Board, the focus will now shift toward enhancing data management and improving existing models, ensuring that these activities contribute to better capital management.

Enhanced Strategic Approach

This revamped strategy aims to achieve desired loan portfolio quality levels, allowing the bank to manage capital requirements more efficiently while optimizing returns on capital. Bigbank’s broader approach now focuses on capital management and sustainability, ensuring that the bank can adapt to changing market demands effectively.

Company Overview

Bigbank AS has established a strong presence in the banking sector, boasting over 30 years of operational experience. As of mid-2025, the bank's total assets reached an impressive 3.1 billion euros, with equity standing at 284 million euros. Operating in nine countries, Bigbank serves over 175,000 customers and has a workforce of over 600 employees. Its creditworthiness is affirmed by a long-term bank deposit rating of Ba1 from Moody's, highlighting its solid baseline credit assessment of Ba2.

Contact Information

For more details about Bigbank AS and its operations, you can reach out to Martin Länts, the Chairman of the Management Board, via email at martin.lants@bigbank.ee. For additional information, please visit www.bigbank.eu.

Frequently Asked Questions

What is the main focus of Bigbank AS's updated strategy?

The updated strategy emphasizes enhancing loan portfolio quality and improving capital management efficiencies.

Why was the IRB project suspended?

The IRB project was suspended due to regulatory changes that diminished its advantages, prompting a shift in focus for the bank.

How has Bigbank AS performed financially?

As of mid-2025, Bigbank AS reported total assets of 3.1 billion euros and equity of 284 million euros.

In how many countries does Bigbank operate?

Bigbank operates in nine countries, serving over 175,000 active customers.

Who can be contacted for more information about Bigbank AS?

For inquiries, Martin Länts, the Chairman of the Management Board, can be contacted via email at martin.lants@bigbank.ee.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

Away from work, I like to read, travel, and sample new foods. My goal is to infuse everything I do with the balance that I think is essential to both financial and personal well-being. By my profession, I want to encourage and enable people to confidently and clearly take charge of their financial futures.

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