MPS Group: ECB notifies SREP own funds requirements for 2020
Minimum SREP requirements unchanged vs. 2019. MPS Group returns to Other Systemically Important Institution status
Siena, 11 December 2019 – Banca Monte dei Paschi di Siena (“BMPS”) announces that it has received the European Central Bank’s (“ECB”) final decision regarding own funds requirements to be fulfilled starting from 1 January 2020.
According to this decision, in 2020 the Group must fulfil a Total SREP Capital Requirement (TSCR) of 11% on a consolidated basis, which includes a Pillar 1 minimum requirement (P1R) of 8% (of which 4.50% in terms of CET1) and an additional Pillar 2 requirement (P2R) of 3%, unchanged from 2019, to be held entirely in the form of CET1 capital.
The overall minimum requirement in terms of Total Capital Ratio is 13.64%, obtained by adding a 2.64% Combined Buffer Requirement (CBR: 2.50% Capital Conservation Buffer + 0.13% O-SII Buffer + 0.01% Countercyclical Capital Buffer ) to the TSCR.
The overall minimum requirement in terms of CET1 ratio is 10.14%, the sum of P1R (4.50%), P2R (3%) and CBR (2.64%).
At 30 September 2019, MPS Group reported a transitional CET1 ratio of 14.8% (12.6% fully loaded) and a transitional Total Capital ratio of 16.7% (14.6% fully loaded), both comfortably above minimum requirements.