Link Securities | On Tuesday, BBVA (BBVA) received a new notification from the Bank of Spain (BdE) regarding the determination of its minimum requirement for own funds and eligible liabilities (MREL), set by the Single Resolution Board (SRB), which applies to it from the date of receipt and has been calculated taking into account financial and supervisory information as at 31 December 2024. This new notification repeals and replaces the previous one received on 12 June 2025.
In accordance with the notice received, BBVA must maintain a volume of own funds and eligible liabilities corresponding to 23.94% of the total risk-weighted assets (RWAs) of its resolution group, at a sub-consolidated level, of which 13.50% of the total RWAs of its resolution group must be met by subordinated instruments. In addition, BBVA must maintain a volume of own funds and eligible liabilities in terms of the total exposure of its resolution group considered for the purposes of calculating the leverage ratio of 8.96%, of which 5.56% in terms of the total exposure of its resolution group considered for the purposes of calculating the leverage ratio must be met by subordinated instruments.
The MREL in APRs and the subordination requirement in APRs do not include the combined capital buffer requirement which, in accordance with current regulations and supervisory criteria, would currently amount to 3.72% of the total APRs of its resolution group.
The resolution group’s current structure of own funds and eligible liabilities complies with the MREL for APRs, the MREL for RA, the subordination requirement for APRs and the subordination requirement for RA.
