Arion Bank: The Central Bank of Iceland Resolution Authority approves the Bank‘s resolution plan and sets the minimum requirement for own funds and other eligible liabilities (MREL)
Prenumeration
Beskrivning
| Land | Island |
|---|---|
| Lista | Large Cap Iceland |
| Sektor | Finans |
| Industri | Bank |
The Central Bank of Iceland Resolution Authority has approved the resolution plan for Arion Bank hf.
With the approval of the resolution plan, the Resolution Authority made a decision on the minimum requirement for own funds and other eligible liabilities (MREL), in accordance with the Act on Resolution of Credit Institutions and Investment Firms, no. 70/2020, as amended.
Arion Bank's MREL requirements are for 19.6% of Total Risk Exposure Amount (TREA), and 6.0% of the Total Exposure Measure. At the end of Q2 2024, the Bank‘s MREL-TREA ratio was 30.9% and the MREL-TEM was 24.2%, both comfortably exceeding regulatory requirements.
The Bank is now also subject to a subordination requirement, set at 13.5% of TREA. Subordinated liabilities are those that rank below liabilities excluded from MREL and bail-in.
The MREL calculation is based on year-end 2023 balance sheet data. The requirements apply from the date of the announcement.