BPI with better capital requirements and MREL liabilities than in 2023

BPI was notified by Banco de Portugal of its minimum requirement for own funds and eligible liabilities (MREL requirement), as determined by the Single Resolution Board, and which replaces the requirement previously applicable and published on April 5, 2023.

According to the notification, BPI, on a sub-consolidated basis, must comply from January 2024 with the minimum amount of own funds and eligible liabilities corresponding to 19.23% of total risk-weighted assets (RWA), which added to the current combined capital reserve requirement (CBR) results in a requirement of 22.24%. This cconsidering O Combined Buffer Requirement (CBR) in 3.01% in December 2023.

In March 2024, BPI already exceeded this requirement by having a ratio in the phasing-in version of 24.5%.

BPI alerts from October 2024, add the requirement of reserve for systemic risk in the residential real estate market in Portugal, according to statement to the market in November 20, 2023which if esteem in about 0.8%.

BPI must comply from January of 2024 the minimum amount of own funds and eligible liabilities corresponding to 5.91% of the total leverage ratio exposure (LRE) measure. The bank, in March 2024, already exceeded this requirement by having a ratio in the phasing-in version of 12.1%.

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

MREL is a regulatory foundation that requires institutions to maintain a robust financial cushion to absorb losses in times of crisis, thus contributing to the stability of the banking system, avoiding bailouts using taxpayers’ money.