(Finance) – Monte dei Paschi di Siena Bank (BMPS) received the final decision of the European Central Bank (ECB) regarding the capital requirements to be met starting from 1 March 2022.
According to this decision – reads the note from the Sienese bank – the MPS Group, at consolidated level, must comply with a requirement
total SREP capital requirement (TSCR) of 10.75%, which includes: a minimum capital requirement – Pillar 1 (“P1R”) of 8% (of which 4.50% in terms of CET1) and an additional Pillar 2 (“P2R”) requirement of 2.75%, which is at the same level that was required for 2021, to be held for at least 56.25% in the form of Common Equity Tier 1 – CET1 – and 75% in the form of Tier 1 capital – Tier 1.
The overall minimum requirement in terms of Total Capital ratio, obtained by adding a Combined Buffer Requirement (CBR) of 2.75% 1 to the TSCR, is 13.50%.
The overall minimum requirement in terms of CET 1 ratio is 8.80%, the sum of P1R (4.50%), P2R (1.55% 2) and CBR (2.75%); the overall minimum requirement in terms of Tier 1 is 10.82%, inclusive of P1R of 6%, P2R of 2.06% 3 and CBR of 2.75%.
On the basis of the capital ratios in place at 31 December 2020, in the context of the SREP decision, the ECB confirmed for BMPS the decision – already in force – to restrict dividends.