The Bank of Portugal has updated BCP’s own funds and eligible liabilities requirements, which are now 28.67%, according to a statement sent this Monday.
BCP was “notified by Banco de Portugal, as the national resolution authority, about the update of its minimum requirement for own funds and eligible liabilities (“MREL” or “Minimum Requirement for own funds and Eligible Liabilities”) as per the decision of the Single Resolution Council”, reads the statement sent to the Securities Market Commission (CMVM).
The updated requirements are 25.17% of the total amount of exposures at risk (TREA), to which is added the combined capital buffer requirement (CBR) of 3.5%, thus corresponding to a total requirement of 28.67%; as well as 6.67% of the total exposure measure (LRE).
These requirements are immediately applicable and cover BCP, ActivoBank and all BCP subsidiaries, with the exception of Bank Millennium SA and Banco Internacional de Moçambique and their respective branches.
Taking these new values into account, BCP ensures that, on the current date, it “complies with the established MREL requirements, both as a percentage of TREA (including CBR) and as a percentage of LRE”.
The MREL requirement aims to ensure that banks are provided with sufficient equity and eligible liabilities to guarantee their ability to absorb losses and recapitalise in adverse scenarios, thus ensuring the continuity of their activity.
Source: www.jornaldenegocios.pt
