The Danish Financial Supervisory Authority has classified Spar Nord Bank A/S as a systemically important financial institution in Denmark effective Jan. 2.

The bank was assigned a 1% buffer requirement that must be met through common equity Tier 1 capital by the end of 2020.

Spar Nord said it anticipated the designation and has raised its strategic target for its CET1 ratio to 13.5% from 13% and its target for the own funds ratio to 17.5% from 16.5%.

The lender had a CET1 ratio of 14.3% and an own funds ratio of 18.7% at the end of the third quarter of 2018 — well above the applicable thresholds.