03.12.2021

Letter from the Bank Guarantee Fund regarding the minimum requirement for own funds and eligible liabilities (“MREL”) for mBank S.A.

Current Report 

Drafted on:

03.12.2021

Current report No

66/2021

Legal basis: 

§ 17 Regulation (EU) No 596/2014 Of The European Parliament And Of The Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC

Contents: 

The Management Board of mBank S.A. ("Bank") informs that on 3 December 2021 the Bank received a letter from the Bank Guarantee Fund (“BFG”) concerning the joint decision of the resolution authorities, i.e. the Single Resolution Board, Magyar Nemzeti Bank (the Hungarian National Bank) and the BFG in regards the requirement of own funds and eligible liabilities ("MREL").

 

The MREL was adjusted in correspondence with the transposition of the Directive (EU) 2019/879 of the European Parliament and of the Council of 20 May 2019 amending Directive 2014/59/EU as regards the loss-absorbing and recapitalisation capacity of credit institutions and investment firms and Directive 98/26/EC (the BRRD2) to the Polish legal regime through the Act on the Bank Guarantee Fund, the Deposit Guarantee Scheme and Resolution of 10 June 2016 (“BFG Act”).

 

The target MREL requirement has been set for the Bank at the consolidated level, excluding mBank Hipoteczny from the consolidation in accordance with Art. 97 (4a) of the BFG Act, at the level of 20,47% of the sum of the total risk exposure amount ("TREA"), while for own funds and subordinated liabilities at the level of 19,96% of TREA and 5,91% of the total exposure measure ("TEM"), while for own funds and subordinated liabilities at the level of 5,74% TEM. The target MREL requirement should be reached by 31 December 2023.

 

Furthermore, the BFG set interim MREL goals which for:

 

-TREA are 15,64% for the end of 2021 and 18,06% for the end of 2022, including in respect to own funds and subordinated liabilities 15,39% and 17,68% respectively, and

 

-TEM are 3,00% for the end of 2021 and 4,46% for the end of 2022, including in respect to own funds and subordinated liabilities 3,00% and 4,37% respectively.

 

BFG informed that the target MREL level with the subordination level will be updated in each subsequent calendar year.

 

 

SIGNATURE OF THE PERSONS REPRESENTING THE COMPANY

Vice-director for investment supervision, Compliance Department

Maciej Mołdawa 03.12.2021