Banco Bilbao Vizcaya Argentaria SA 2021 MREL Requirement (3047A)
June 01 2021 - 2:00AM
UK Regulatory
TIDMBVA
RNS Number : 3047A
Banco Bilbao Vizcaya Argentaria SA
01 June 2021
Banco Bilbao Vizcaya Argentaria, S.A. ("BBVA"), in compliance
with the Securities Market legislation, hereby communicates the
following:
INSIDE INFORMATION
BBVA has received a new communication from the Bank of Spain
regarding its minimum requirement for own funds and eligible
liabilities ("MREL"), as determined by the Single Resolution Board
("SRB"), that has been calculated taking into account the financial
and supervisory information as of December 31, 2019 ([1]) , and
which supersedes the previous MREL communication published on
November 19, 2019.
In accordance with this new MREL communication, BBVA has to
reach, by January 1, 2022, an amount of own funds and eligible
liabilities equal to 24.78% ([2]) of the total risk weighted assets
("RWAs") of its resolution group, on sub-consolidated level ([3])
(the "MREL in RWAs"). Within this MREL in RWAs, an amount equal to
13.50%(2) of the RWAs shall be met with subordinated instruments
(the "subordination requirement in RWA").
This MREL in RWA is equal to 10.25% in terms of the total
exposure considered for calculating the leverage ratio (the "MREL
in LR"), while the subordination requirement in RWAs is equal to
5.84% in terms of the total exposure considered for calculating the
leverage ratio (the "subordination requirement in LR").
The current own funds and eligible liabilities structure of the
resolution group meets the MREL in RWAs, the MREL in LR, the
subordination requirement in RWAs and the subordination requirement
in LR.
MREL
% RWAs % Leverage ratio
(LR) exposure
Requirement as of
January 1, 2022 24.78% 10.25%
------------- -----------------
Own funds and eligible
liabilities as of
March 31, 2021 29.23% ([4]) 13.40%
------------- -----------------
Subordination requirement
% RWAs % Leverage ratio
(LR) exposure
Requirement as of
January 1, 2022 13.50% 5.84%
---------- -----------------
Own funds and eligible
subordinated liabilities
as of March 31, 2021 25.95%(4) 11.89%
---------- -----------------
Madrid, May 31, 2021
([1]) As the reference date used for the calibration of the MREL
has been December 31, 2019, the effects, among other issues, of the
expected sale of the BBVA Group subsidiary BBVA USA Bancshares,
Inc, which was announced to the market on November 16, 2020, have
not been taken into account.
([2]) In accordance with the new applicable regulation, the MREL
in RWAs and the subordination requirement in RWAs do not include
the combined capital buffer requirement. For these purposes, the
applicable combined capital buffer requirement would be 2.5%,
without prejudice to any other buffer that may be applicable at any
time.
([3]) Pursuant to BBVA Group's MPE (Multiple Point of Entry)
resolution strategy, as established by the SRB, the resolution
group consists of Banco Bilbao Vizcaya Argentaria S.A. and the
subsidiaries that belong to the same European resolution group. As
of December 31, 2019, the RWAs of the resolution group amounted to
204,218 million euros and the total exposure considered for
calculating the leverage ratio amounted to 422,376 million
euros.
([4]) Own funds and eligible liabilities to meet both MREL in
RWAs or subordination requirement in RWAs, as applicable, and the
combined capital buffer requirement, which would be 2.5%, without
prejudice to any other buffer that may apply at any time.
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