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Spanish banks disclose ECB regulatory requirements for 2020

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Spanish banks disclose ECB regulatory requirements for 2020

Spanish lenders Banco de Sabadell SA, CaixaBank SA and Banco Bilbao Vizcaya Argentaria SA disclosed their respective minimum capital requirements set by the ECB for 2020, following the regulator's annual supervisory review and evaluation process.

The ECB requires Sabadell to maintain a common equity Tier 1 ratio of 9.63% and minimum total capital of 13.13%, both on a phased-in basis. These ratios include a 4.50% minimum Pillar 1 requirement, a 2.25% Pillar 2 requirement, a 2.50% capital conservation buffer, a 0.25% systemic risk buffer and a 0.13% anticyclical buffer. As of Sept. 30, Sabadell's phased-in CET1 and total capital ratios stood at 12.10% and 15.30%, respectively.

CaixaBank is required to maintain a CET1 ratio of 8.78%, which includes a 4.50% minimum Pillar 1 requirement, a 1.50% Pillar 2 requirement, a 2.5% capital conservation buffer, a 0.25% other systemically important institutions buffer and a 0.03% countercyclical buffer. The lender's respective CET1, Tier 1 and total capital ratios stood at 11.7%, 13.2% and 15.3% at the end of September.

Sabadell and CaixaBank noted that their capital requirements remain unchanged from 2019.

BBVA said it must maintain CET1 capital ratio of 9.27% and a total capital ratio of 12.77%, on a consolidated basis, effective Jan. 1, 2020. These include a Pillar 1 requirement of 8% that should be fulfilled by a minimum of 4.5% of CET1, a Pillar 2 requirement of 1.5% of CET1, a capital conservation buffer of 2.5% of CET1, an O-SII buffer of 0.75% of CET1 and a countercyclical capital buffer of 0.02% of CET1. As of Sept. 30, BBVA's CET1 capital and total capital ratios came in at 11.80% and 16.22%, on a consolidated and phased-in basis.

With respect to minimum requirement for eligible liabilities and own funds as determined by the ECB's Single Resolution Board, BBVA is required to hold 15.16% of total liabilities and own funds of its resolution group, which would be equal to 28.50% in terms of risk-weighted assets at 2017-end.

Meanwhile, Banco Santander SA's total MREL requirement was set at 16.81% in terms of the resolution group's total liabilities and own funds, which is equivalent to 28.60% in terms of RWAs at the end of 2017, effective Jan. 1, 2020.