The resolution authority has updated the Minimum Requirement for Own Funds and Eligible Liabilities for OP Financial Group

OP Corporate Bank plc

OP Corporate Bank plc
OP Cooperative
Inside information
16 March 2023 at 17.15 EET

The resolution authority has updated the Minimum Requirement for Own Funds and Eligible Liabilities for OP Financial Group

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 updated OP Financial Group’s subordination requirement in accordance with the Single Resolution Mechanisms Regulation. The subordination requirement determines how large a part of the MREL must be fulfilled with own funds or with subordinated liabilities.

The MREL is 22.3% of the total risk exposure, 26.3% of the total risk exposure including a combined buffer requirement, and 7.4% (previously 9.92%) of leverage ratio exposures. The updated subordination requirement supplementing the MREL was decreased to 14.66% of the total risk exposure amount and 18.66% of the total risk exposure amount including a combined buffer requirement, and 7.4% of leverage ratio exposures. This took effect on 15 March 2023.

From the beginning of 2024, the MREL will be 22.89% of the total risk exposure, 26.89% of the total risk exposure including a combined buffer requirement, and 7.4% of leverage ratio exposures.

OP Financial Group clearly exceeds the new MREL requirement. At the end of December 2022, OP Financial Group’s MREL ratio was an estimated 38.2% of the total risk exposure and, based on the subordination requirement, the MREL ratio for subordinated liabilities was an estimated 11.1% of leverage ratio exposures.

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
OP Cooperative

Further information:
OP Financial Group’s Investor Relations, IR@op.fi

Media enquiries:
OP Financial Group’s Corporate Communications, tel. +358 10 252 8719, viestinta@op.fi

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OP Financial Group is Finland’s largest financial services group, with over two million owner-customers and around 13,000 employees. We provide a comprehensive range of banking and insurance services for personal 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. Together with our owner-customers, we have been building Finnish society and a sustainable future for more than 120 years. www.op.fi