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BBVA says it already meets updated MREL requirements set by EU resolution authorities

Story Highlights
  • BBVA received updated MREL requirements from the Bank of Spain, reflecting SRB guidelines and new capital thresholds.
  • The bank states its existing capital and eligible liabilities already satisfy all revised MREL and subordination requirements without adjustment.
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BBVA says it already meets updated MREL requirements set by EU resolution authorities

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Banco Bilbao Vizcaya Argentaria ( (ES:BBVA) ) just unveiled an update.

BBVA has received an updated determination from the Bank of Spain, reflecting Single Resolution Board criteria as of December 31, 2024, for its Minimum Requirement for own funds and Eligible Liabilities (MREL) at sub-consolidated level. The bank must maintain own funds and eligible liabilities equal to at least 23.94% of risk-weighted assets, with 13.50% in subordinated instruments, and 8.96% of total exposure for leverage ratio purposes, including a 5.56% subordinated component.

These new MREL and subordination thresholds supersede the prior framework and sit on top of a combined capital buffer requirement of 3.72% of risk-weighted assets, shaping BBVA’s loss-absorbing capacity expectations. BBVA reports that its current capital and eligible liability structure already complies with all updated MREL and subordination requirements, indicating no immediate need for balance sheet adjustment and supporting regulatory confidence in its resolvability and capital strength.

More about Banco Bilbao Vizcaya Argentaria

Banco Bilbao Vizcaya Argentaria (BBVA) is a major Spanish banking group operating primarily in retail and commercial banking, corporate and investment banking and related financial services. The group has a significant presence in Europe under a Multiple Point of Entry resolution strategy, which defines a specific European resolution group for regulatory and supervisory purposes.

Learn more about BBVA stock on TipRanks’ Stock Analysis page.

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