Link Securities | CaixaBank has announced that the Bank of Spain has notified it formally of its minimum level of eligible assets (MREL), as has been determined by the Single Resolution Unit (JUR, in Spanish).
According to this communique, Caixabank, from 1 January 2021, must reach a volume of own funds and admissible assets at a consolidated level of 10.6% of the total consolidated assets and own funds calculated on 31 December 2017. This MREL requirement at a consolidated level would rise to 22.5% in terms of risk weighted assets calculated on 31 December 2017.
Caixabank reached a MREL ratio of 20.2% at consolidated level on 31 March 2019, according to its estimates, based on the JUR´s current computation criteria. The MREL requirement established coincides with Caixabank´s previsions and the financing plan included in the Strategic Plan for 2019-2020 allows it to exceed it comfortably. This plan foresees the refinancing of around 7.5 billion euros in maturation of wholesale debt through the issue of assets allowed by MREL, principally subordinated debt.