Within the scope of the Supervisory Review and Evaluation Process (SREP), supervisory authorities assess and measure the risks that banks are exposed to in their view. In particular, SREP shows capital requirements.
SREP-capital requirements for 2025
Munich, 17 December 2024 – The European Central Bank (ECB) informed Deutsche Pfandbriefbank AG (pbb) of the outcome of its Supervisory Review and Evaluation Process (SREP) 2024.
The bank-specific pillar 2 additional capital requirement (P2R) has been adjusted from 3.0% to 3.25% with effect from 01 January 2025, of which at least 56.25% is to be covered by CET1 capital and 75% by Tier 1 Capital.
The SREP-capital requirement on CET1 capital was set at 8.83% on a consolidated basis. It is made up of a pillar 1 minimum regulatory capital requirement of 4.50%, a pillar 2 capital requirement of 1.83% (Total SREP Capital Requirement – TSCR: 6.33%) and the capital conservation buffer of 2.50%. The relevant capital requirements for the other capital forms changed accordingly to 10.94% for Tier 1 and a Total Capital Ratio of 13.75%.
pbb slightly increases the relevant anticipated additional capital buffer from 95 bp to 100 bp given the countercyclical capital buffer and the systemic risk buffer for the sector.
pbb’s capital basis remains well above the regulatory thresholds mentioned above, even considering the anticipated additional capital buffer.