Following an updated assessment the Norwegian FSA (NFSA) - in its Supervisory Review and Evaluation Process (SREP) for Sparebanken Møre - has decided on the overall capital requirement in Pillar 2 and the expected capital requirement margin ("Pillar 2 Guidance") for the bank. The Pillar 2 Requirement and Pillar 2 Guidance comes in addition to the requirements for capital under Pillar 1.
According to the NFSA the total capital requirement for Sparebanken Møre under Pillar 2 amounts to 1.6 per cent of risk weighted assets under Pillar 1, compared with the previous requirement of 1.7 per cent. At least 56.25 per cent of the requirement shall be met with Common Equity Tier 1 (CET1) Capital, while 75 per cent must be met with Tier 1 Capital. This means that the requirement for CET1 Capital is reduced by 0.8 percentage points from previously.
The Pillar 2 Guidance is unchanged at 1.25 per cent.
The decision enters into force on 31 December 2023.
Contact:
John Arne Winsnes, CFO +47 46280999
Runar Sandanger Senior Economist +47 95043660