OP Corporate Bank plc
Stock exchange release
17 May 2021 at 5.20 pm
Correction: The resolution authority has updated the minimum requirement for own funds and eligible liabilities for OP Financial Group
The stock exchange release published by OP Financial Group on Friday 14 May at 5.30 pm included incorrect information related to the schedule for entry into force of the MREL requirement. The updated MREL will not enter into force with immediate effect as stated in the original release but on 1 January 2022. The corrected full release is shown below.
The resolution authority has updated the Minimum Requirement for own funds and Eligible Liabilities (MREL) for OP Financial Group. As part of the MREL, the resolution authority has set a new subordination requirement for OP Financial Group in accordance with the Single Resolution Mechanism Regulation. The subordination requirement determines how much of the MREL requirement must be met with own funds or with subordinated liabilities.
The updated MREL is 25.8% of the total risk exposure amount and 10.12% of the leverage ratio exposure amount. It will come into force on 1 January 2022. The subordination requirement supplementing the MREL will account for 22% of the total risk exposure amount from the beginning of 2022 and for 10.11% of the leverage ratio exposure amount. The subordination requirement will account for 24% of the total risk exposure amount from the beginning of 2024 and for 10.12% of the leverage ratio exposure amount.
At the end of March 2021, OP Financial Group’s MREL ratio was an estimated 38% and the MREL ratio based on the subordination requirement an estimated 25% for subordinated liabilities.
The requirements under the MREL are determined annually, using uniform principles applying to all euro-area banks as part of the EU-level resolution regulation. The EU’s Single Resolution Board (SRB) based in Brussels is OP Financial Group’s resolution authority.
The resolution authority kept OP Financial Group’s resolution strategy unchanged. Resolution measures would focus on the OP amalgamation and on OP Corporate Bank formed in the case of resolution.
OP Corporate Bank plc
Chief Communications and Corporate Responsibility Officer
OP Financial Group Communications, tel. +358 10 252 8719, email@example.com
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OP Financial Group is Finland’s largest financial services group that has two million owner-customers and more than 12,000 employees. We provide a comprehensive range of banking and insurance services for private and corporate customers. OP Financial Group consists of OP cooperative banks, its central cooperative OP Cooperative, and the latter’s subsidiaries and affiliates. Our mission is to promote the sustainable prosperity, security and wellbeing of our owner-customers and operating region. www.op.fi