The Portuguese public bank, Caixa Geral de Depósitos (CGD), has announced adjustments to its capital and eligible liabilities requirements, as relayed by the Securities Market Commission (CMVM). The notification from Banco de Portugal aligns with directives from the Single Resolution Board.
The public bank stated that the current requirements show a decrease compared to previous mandates, acknowledging the progress the Caixa Group has made in its operational readiness for a ‘bail-in’ scenario and the associated governance model.
Effective from May 26, 2025, CGD notes that the requirement for own funds and eligible liabilities will amount to “22.37% of the total risk-weighted assets, with an additional combined buffer requirement of 3.31%, resulting in a total requirement of 25.68% (a reduction of 65 basis points from the previous requirement of 26.33%)” along with “6.30% of the total leverage ratio exposure.”
According to CGD, these requirements apply on a subconsolidated basis for the defined resolution perimeter. It is highlighted that “Caixa has not been assigned a mandatory minimum subordination requirement.”
Moreover, CGD reported that “as of March 31, 2025, the MREL ratio was 27.22% of total risk-weighted assets and 10.31% of total leverage ratio exposure, exceeding the established requirement.” The bank anticipates continuing to meet these requirements through a combination of own funds and eligible liabilities.”
