Within the scope of the Supervisory Review and Evaluation Process (SREP), supervisory authorities assess and measure the risks that banks are exposed to. In particular, SREP shows capital requirements.

 

EZB SREP – 8.41% CET1 capital requirement for pbb

Munich, 10 February 2022 – The European Central Bank (ECB) informed pbb about the outcome of its Supervisory Review and Evaluation Process (SREP) 2021.

The demand for common equity tier 1 capital (CET1) was set at 8.41% on a consolidated basis and effective 1 March 2022. It includes a Total SREP Capital Requirement (TSCR) of 5.91% CET1 and a capital conservation buffer of 2.5% CET1. In addition, pbb’s anticipated countercyclical buffer amounts to 0.45%. The TSCR demand for own funds was set at 10.5% on a consolidated basis.

pbb’s capital basis significantly exceeds the demand from ECB and national competent authorities, even when applying anticipated effects from EBA guidelines and Basel IV. CET1 comprises of share capital and capital reserves; it represents the highest quality capital and is a measurement for the capital strength of a bank.

pbb has reported SREP outcome on a regular basis since 2016. ECB envisages  the publication of the SREP outcome for non-global systemically important banks under the Single Supervisory Mechanism for 10 February 2022.

 

Figure: SREP Requirements 2022 (without anticipated countercyclical buffer)