The Central Bank of Iceland Resolution Authority has approved the resolution plan for Arion Bank hf.
With the approval of the resolution plan, the Resolution Authority made a decision on the minimum requirement for own funds and other eligible liabilities (MREL), in accordance with the Act on Resolution of Credit Institutions and Investment Firms, no. 70/2020, as amended.
Arion Bank's MREL requirements are for 19.8% of Total Risk Exposure Amount (TREA), and 6.0% of the Total Exposure Measure. At the end of Q2 2025, the Bank‘s MREL-TREA ratio was 27.6% and the MREL-TEM was 22.1%, both comfortably exceeding regulatory requirements.
The Bank is also subject to a subordination requirement, set at 13.5% of TREA. Subordinated liabilities are those that rank below liabilities excluded from MREL and bail-in.
The MREL calculation is based on year-end 2024 balance sheet data. The requirements apply from the date of the announcement.
For any further information please contact:
Theodór Friðbertsson, Investor Relations at Arion Bank, ir@arionbanki.is, tel. +354 856 6760 or Eirikur Dor Jonsson, Head of Treasury at Arion Bank, eirikur.jonsson@arionbanki.is, tel. +354 856 7171