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BPI with capital requirements and MREL commitments better than in 2023

BPI with capital requirements and MREL commitments better than in 2023

“As of March 31, 2024, BPI is in compliance with the specified MREL requirements, as a percentage of RWA and as a percentage of LRE. In addition, in the long-term financing plan, BPI continues to comply with the MREL requirements in the future,” the bank said.

BPI has been notified by the Banco de Portugal regarding the Minimum Requirements for Own Funds and Eligible Liabilities (MREL Requirements), as set by the Single Resolution Board, which replaces the previously applicable requirements published on 5 April 2023.

As per the notification, BPI shall, on a sub-consolidated basis, from January 2024 be committed to a minimum of own funds and eligible commitments equivalent to 19.23% of its total risk-weighted assets (RWA), which is in addition to the existing pooled capital. The Reserve Requirement (CBR) results in a requirement of 22.24%. This is cTaking into account the Hey Bulk Buffer Requirement (CBR) in 3.01% In December 2023.

In March 2024, BPI has already exceeded this requirement by obtaining a phased release ratio of 24.5%.

BPI alerts from October 2024, Add the requirements Spare For systemic risks In the residential real estate market in Portogirl, according to statement To the market in November 20, 2023which if Appreciation in on 0.8%.

Must comply with BPI from January of 2024 Minimum own funds and qualifying commitments Interview for 5.91% of the total Leverage Ratio Exposure (LRE) measure. The bank has already exceeded this condition in March 2024 by obtaining a gradual issuance ratio of 12.1%.

In a statement, the bank says that “as of March 31, 2024, BPI is in compliance with established MREL requirements, both as a percentage of RWA and as a percentage of LRE. In addition, in its long-term financing plan, BPI continues to comply with the MREL requirements in the future.”

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MREL is a regulatory institution that requires institutions to maintain a strong financial cushion to absorb losses in times of crises, thus contributing to the stability of the banking system, and avoiding bailouts using taxpayers' money.