A person makes use of an ATM machine at a Santander financial institution department in Ronda, Spain, October 25, 2022. REUTERS/Jon Nazca/File Picture Purchase Licensing Rights
MADRID, Dec 11 (Reuters) – Spain’s Santander (SAN.MC), the euro zone’s second-biggest financial institution by market worth, on Monday stated the European Central Financial institution (ECB) had set a minimal threshold for its strictest measure of solvency above the earlier yr’s stage.
The ECB set the edge for Santander’s Widespread Fairness Tier 1 (CET1) capital ratio at 9.6% for 2024, up from 8.91% set for the present yr final December. The brand new requirement kicks in on Jan. 1.
Santander was the final of the six Spanish listed banks to reveal its solvency necessities, that are set by the ECB for many Spanish banks as a part of a supervisory evaluate and analysis course of (SREP).
The method supplies an total evaluation of the challenges that face vital establishments, along with the corresponding solvency necessities and different supervisory measures banks are anticipated to adjust to within the yr forward.
The Pillar 2 requirement, which is a bank-specific capital requirement that applies along with the minimal capital requirement, rose to 1.74% versus 1.58% in 2023.
Reporting by Jesús Aguado
Enhancing by David Goodman
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