Kutxabank complies with the minimum requirements for own funds and admissible liabilities (MREL) established by the Single Resolution Board (JUR), one of the lowest requirements for 2024 in the Spanish and European financial system.

The Basque bank, which has already notified said compliance to the National Securities Market Commission (CNMV), has also reported that the analysis has set for the Basque Group an MREL requirement of 17.71%, which remains stable with compared to previous years.

As highlighted by Kutxabank, the bank has the highest quality solvency among Spanish financial entities, and has already carried out the computable issues to comply with these MREL requirements.

In this way, the Basque Financial Group must achieve, as of January 1, 2024, a minimum volume of own funds and admissible liabilities at a consolidated level of 17.71% of the amount of its total risk exposure (TREA), and of 5.23% of its exposure for the purposes of the leverage ratio (LRE).

Additionally, the Entity must maintain the capital conservation cushion of 2.5% in terms of risk-weighted assets, so the total requirement remains stable with respect to previous years.

The analysis of the Single Resolution Board reflects that Kutxabank meets the terms established for the 2024 financial year, both “due to its high level of solvency – the highest in the system – and for having carried out the computable issues to comply with the MREL requirements.” .

In this sense, the Kutxabank Group has carried out two issues of Senior and Senior Non Preferred debt in 2023, which have had “very good acceptance” among national and international investors, and since their issuance have evolved “very favorably” with respect to the issues of other Spanish financial entities.

The resolution regulations sponsored by the Single Supervisory Mechanism require having detailed plans that allow rapid management in the event of non-viability, as well as the constitution of instruments of own resources or external funds that support hypothetical losses that may arise.

This requirement must be covered with capital and subordinate financial instruments, such as preferred shares, subordinated debt or senior debt.

The result for Kutxabank of the analysis of the Single Resolution Board reflects “the positive view on the resolution strategies that the Group could adopt, as well as the confidence in its solvency levels and its financial capacity”, the Basque bank has highlighted.

On the other hand, the aforementioned requirements are aligned with the financing plan managed by the Kutxabank Group, which at the end of September 2023 already presents MREL levels above the required thresholds.