Kurs & Likviditet
Beskrivning
| Land | Norge |
|---|---|
| Lista | 39974 |
| Sektor | Finans |
| Industri | Bank |
2021-11-26 10:43:40
SpareBank 1 Østlandet has received advance notice from the Norwegian Financial
Supervisory Authority (NFSA) of an updated Minimum Requirement for Own Funds and
Eligible Liabilities (MREL).
The updated MREL-requirement has been set to 26.6 per cent of the company's
adjusted Risk Weighted Assets (RWA). Since Common Equity Tier 1 (CET1) capital
used to fulfill risk-weighted MREL cannot at the same time be used to fulfill
combined buffer requirement, the estimated actual need for Own Funds and
Eligible Liabilities from the minimum requirements (effective MREL) will be 34.6
per cent. The requirement is effective from 1 January 2022.
According to BRRD2, the entire MREL-requirement will not need to be met with
subordinated instruments. Based on the framework of BRRD2, the NFSA has
determined that the company will need to have own funds and subordinated
liabilities of at least 27.6 per cent of adjusted RWA, based on relevant capital
adequacy requirements as of 31 December 2020.
The difference between the effective MREL-requirement and the company's
subordinated liabilities, can be met with senior unsecured debt issued from the
bank to external investors with a residual maturity of at least 12 months.
The subordination requirement shall as a minimum be phased in linearly and be
fulfilled entirely from 1 January 2024 with approved instruments. From 1 January
2022, the effective minimum requirement for subordination will be 21.5 percent
of the adjusted RWA (i.e. 13.5 per cent plus the combined buffer requirement of
8.0 per cent).
SpareBank 1 Østlandet does not expect significant changes from the advance
notice to the final requirement.
Contact persons at SpareBank 1 Østlandet:
Geir-Egil Bolstad, CFO, tel: +47 91 88 20 71, e-mail:
geir-egil.bolstad@sb1ostlandet.no
Cathrine Mordal, Head of Treasury, tel: +47 480 02 537, e-post:
cathrine.mordal@sb1ostlandet.no