Regulatory Filings • Dec 15, 2020
Regulatory Filings
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SpareBank 1 BV has received a notice regarding Minimum Requirement for Own Funds and Eligible Liabilities (MREL)
The Financial Supervisory Authority of Norway has set SpareBank 1 BV’s MREL requirement at 31.8 per cent of adjusted Risk-Weighted Assets (RWA).
The requirement is based on the Group’s balance sheet as at 31 December 2019. Taking into account available primary capital in the Group, this indicates an increased nominal requirement for eligible liabilities of NOK 2,127 million. The Group must meet the requirement by 31 March 2021.
The eligible liabilities included in fulfilling the minimum requirement must be debt instruments with a lower priority than ordinary Senior Preferred debt (SP), and the debt must have been issued by the Group’s parent company to external investors. The subordination requirement must be met by 1 January 2024. It can be phased in up to 1 January 2024 by the Group including in its fulfilment of the minimum requirement unsecured senior bond debt (SP) issued by SpareBank 1 BV to external investors with remaining maturity above one year.
The phasing in of the subordination requirement shall as a minimum be linear during the years 2021, 2022 and 2023, such that during 2021 the Group shall as a minimum phase in one third of the requirement, calculated as at 31 December 2020. SpareBank 1 BV will submit a plan on how they intend to meet the subordination requirement to the Financial Supervisory Authority of Norway by 31 March 2021.
Tønsberg 15.12.2020
Contact person:
Dept. CEO Geir Årstein Hansen, mob. 91 32 21 37
Head of Treasury, Per Grøtterød, mob. 91 32 21 38
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