Capital and MREL requirements have been set

Šiaulių Bankas AB, company code 112025254, domicile address Tilžės st. 149, LT-76348 Šiauliai, Lithuania.

Following the Supervisory Review and Evaluation Process (SREP) of Šiaulių Bankas AB, the Bank of Lithuania set a 1.4 per cent additional capital requirement (P2R) calculated for the additional risks under Pillar II. It will replace previously set amount of the additional capital of 0.9 per cent. The following minimum capital requirements shall apply to the Bank:

- a common equity Tier 1 capital adequacy (CET1) ratio of 5.9 per cent;

- a SREP capital adequacy ratio of 9.4 per cent;

- a total capital adequacy ratio (including all reserve requirements) of 13.4 per cent.

It is also recommended that Šiaulių Bankas holds an amount of 1 per cent of non-binding P2G capital buffer that should be included in the bank's capital planning and risk management systems, including risk taking and recovery planning.

The Bank of Lithuania has set a mandatory minimum requirement on equity and eligible liabilities for Šiaulių Bankas at the consolidated level (hereinafter MREL requirement) which the Bank will have to meet continuously after the end of the transitional period in accordance with the provisions of Article 25 of the Law on Financial Sustainability of the Republic of Lithuania. 

The following MREL requirements shall apply to the bank at consolidated level:

- MREL requirement of 15.13% for total equity and liabilities (applicable from 01 January 2024, with transitional targets:  at least 86% of the MREL requirement by 1 January 2022, at least 93% of the MREL requirement by 01 January 2023);

- MREL subordination requirement of 11.69% for total equity and liabilities (effective from 01 January 2022).

During the transitional period, Šiaulių Bankas will accumulate enough capital and eligible liabilities to meet its MREL requirements. 

Additional information:

Deputy CEO

Donatas Savickas, ,