INDEXO Bank’s first SREP: 11.3% capital requirement, 16% capital target
INDEXO Bank’s first SREP: 11.3% capital requirement, 16% capital target
AS INDEXO Banka (hereinafter – the Bank), a subsidiary of IPAS INDEXO, on 9 November 2026 received the decision of the Supervision Committee of Latvijas Banka of 4 November 2026 on the results of the Bank’s first Supervisory Review and Evaluation Process (SREP). The decision sets the capital requirements that the Bank must meet on an individual basis and at the level of the prudential consolidation group from 1 January 2027.
Latvijas Banka has set a Pillar 2 requirement (P2R) of 3.3% of the total risk exposure amount. Together with the Pillar 1 minimum requirement of 8%, the total SREP capital requirement (TSCR) is 11.3%. Taking into account the combined buffer requirement of 3.5% and a management buffer of 1.2%, the Bank will use a target level of 16% for the total capital ratio in its capital management going forward. At 30 September 2026, the Bank’s total capital ratio was 18.3%, and its Common Equity Tier 1 (CET1) ratio was 9.9%. The planned capital raise will further strengthen the Bank’s capital base to support continued lending growth.
The Group’s financial plan for 2026–2029, published on 8 October 2026, already incorporated capital requirements at this level. The SREP decision therefore does not change the published financial plan.
“The completion of the first SREP cycle is an important milestone in the Bank’s development. We appreciate the constructive dialogue with Latvijas Banka throughout the process. The recommendations received are in line with our own priorities: strengthening governance, risk management and group integration. A clear capital requirements framework allows us to plan capital more efficiently and to continue the lending growth we have started,” says Chairman of the Board and co-founder of INDEXO Bank Valdis Siksnis.