The Financial Supervisory Authority of Norway (“the FSA”) has updated the assessment of Supervisory Review and Evaluation Process (“SREP”) for risks and capital needs for SpareBank 1 SMN and decided on the capital requirements for Pillar 2 and Pillar 2 guidance. These capital requirements come in addition to the minimum requirements and combined buffer requirements under Pillar 1.
The FSA has decided that the Pillar 2 requirements shall be reduced from 1.9 % to 1.7 % of the total risk exposure amount (TREA). SpareBank 1 SMN have in addition a temporary requirement in Pillar 2, tied to model risks, of 0.7 %. At least 56.25 percent of the requirement must be covered with Core Equity Tier 1, while 75 percent must be covered with Tier 1 capital.
The expectation for Pillar 2 Guidance is unchanged at 1.25 percent.
The new requirement will apply from 31 December 2023.
Trondheim, 13 December 2023
Contact:
CFO Trond Søraas, tel. +47 922 36 803
CRO Ola Neråsen, tel. +47 918 09 722
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.