Current Report 39/2020 - BFG's letter to set a minimum requirement for own funds and eligible liabilities - MREL - publicised on 15 December 2020, at 16:23 hours
The Management Board of Bank Ochrony Środowiska S.A. domiciled in Warsaw hereby inform that on 15 December 2020 the Board received, from the Bank Guarantee Fund ("BFG") a letter notifying of a new MREL level set on the basis of Bank's financial data as of 31 December 2019.
The target MREL level for the Bank based on separate data equals 12.87% of the total own funds and liabilities (MREL to TLOF), which corresponds to 16.27% (MREL to TRE) of total risk exposure. Further, the target reaching path has been set, according to which, as of 31 Dec. 2021 and 31 Dec. 2022, MREL to TLOF equals 10.80% and 11.83% respectively (which corresponds to 13.65% and 14.96% of total risk exposure respectively).
The target MREL for the Bank, based on its consolidated data, totals 13.16% of total own funds and liabilities (MREL to TLOF), which corresponds to 16.23% (MREL to TRE) of total risk exposure. Further, the target reaching path has been set, according to which, as of 31 Dec. 2021 and 31 Dec. 2022 MREL to TLOF equals 11.04% and 12.10% respectively (which corresponds to 13.63% and 14.93% of total risk exposure, respectively).
The Bank is obligated to fulfil the target MREL levels by 1 Jan. 2024.
The BFG informed that in the following planning cycle, the MREL value will be set based on a new methodology related to the so-called Bank Package comprising amendments to BRRD, CRD IV directives and CRR regulation.
Legal basis:
Art. 17 section 1 of Regulation (EU) no. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (MAR).
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