MADRID, Dec 11 (Reuters) - Spain's Santander, the euro zone's second-biggest bank by market value, on Monday said the European Central Bank (ECB) had set a minimum threshold for its strictest measure of solvency above the previous year's level.
The ECB set the threshold for Santander's Common Equity Tier 1 (CET1) capital ratio at 9.6% for 2024, up from 8.91% set for the current year last December. The new requirement kicks in on Jan. 1.
Santander was the last of the six Spanish listed banks to disclose its solvency requirements, which are set by the ECB for most Spanish banks as part of a supervisory review and evaluation process (SREP).
The process provides an overall assessment of the challenges that face significant institutions, together with the corresponding solvency requirements and other supervisory measures banks are expected to comply with in the year ahead.
The Pillar 2 requirement, which is a bank-specific capital requirement that applies in addition to the minimum capital requirement, rose to 1.74% versus 1.58% in 2023.
Reporting by Jesús Aguado Editing by David Goodman
Source: Reuters