Sparebanken Møre

Capital/Financing Update • Dec 13, 2021

Sparebanken Møre has received a decision regarding Minimum Requirements for Own Funds and Eligible Liabilities (MREL)

Sparebanken Møre has received a decision regarding Minimum Requirements for Own Funds and Eligible Liabilities (MREL)

The Financial Supervisory Authority of Norway has decided that Sparebanken Møre shall have a risk-weighted MREL requirement of 25.9 per cent of adjusted risk-weighted assets based on relevant capital requirements as of 31.12.2020. As CET1-capital used to meet risk-weighted MREL cannot be used at the same time to meet the combined buffer requirement, the calculated actual need for subordinated capital and convertible debt is effectively 31.4 per cent of adjusted risk-weighted assets.

For Sparebanken Møre, the effective MREL requirement based on the above basis will amount to MNOK 9,284 and the total claim for subordination will amount to MNOK 7,658.

The total requirement for subordinated capital shall, as a minimum, be phased in linearly and shall be met in full from 1 January 2024. From 1 January 2022, the effective requirement for subordination is 20 per cent of the adjusted risk-weighted assets. For Sparebanken Møre, this will amount to MNOK 5,914. Estimated available subordinated capital to cover efficient MREL needs and minimum requirements for total subordination is MNOK 5,094.

Contact: Runar Sandanger, Senior Economist: +4795043660