Legal basis:
Article 17. 1 of the MAR Regulation
Report content:
The Management Board of PKO Bank Polski S.A. ("Bank") informs that on October 20, 2020, the Bank received a letter from the Bank Guarantee Fund ("BFG") regarding the change in the minimum level of own funds and eligible liabilities subject to write down or conversion ("MREL", the minimum requirement for own funds and eligible liabilities), about which the Bank announced in the current report 18/2019 of November 6, 2019.
The BFG set the target MREL requirement at the consolidated level corresponding to 12.65% of total liabilities and own funds ("TLOF"), which accounted for 20.12% of the total risk exposure amount ("TRE") as at December 31, 2019. The target MREL requirement at the standalone level is 12.07% of TLOF, which was 20.19% of TRE as of December 31, 2019. The above levels will apply to the Bank from January 1, 2024.
The BFG set a path to meet the above-mentioned requirements. At the consolidated level as at December 31, 2021, December 31, 2022 and December 31, 2023, the MREL in relation to TLOF is: 10.06%, 11.35% and 12.65%, which in relation to TRE as of December 31, 2019 amounted to 15.99%, 18.06% and 20.12%, respectively. At the standalone level, as at December 31, 2021, December 31, 2022 and December 31, 2023, the MREL in relation to TLOF is: 9.59%, 10.83% and 12.07%, which in relation to TRE as of December 31, 2019 amounted to 16.05%, 18.12% and 20.19% respectively.
At the same time, the BFG informed that in the 2021 planning cycle, the Fund will determine MREL based on a new methodology, which will base on the BRRD and CRD IV directives and the CRR regulation adopted in 2019.