Finanstilsynet has concluded that the preferred resolution option for SpareBank 1 SMN will be recapitalization through bail-in. Pursuant to the Financial institutions act § 20-9, jf. § 20-25, Finanstilsynet have made the following decision:
- Sparebank 1 SMN shall have a minimum requirement for own funds and eligible liabilities (MREL) of 33,3 percent of adjusted risk weighed assets. At December 31th 2018 this translates to a minimum requirement of 27 235 million NOK.
- Eligible debt which can be used to fulfill the requirement, shall be issued by the parent bank to external investors. The liabilities shall be non-preferred debt.
- The requirement comes into effect at March 31st 2020. The requirement of subordination shall be fulfilled by 31. December 2022 and until this date, the requirement can be phased in though the ability to include liabilities issued before January 1. 2020, under the assumption that the issued debt meets the general requirement for convertible debt.
SpareBank 1 SMN must present a plan for the phase in of MREL-qualifying debt to the Finanstilsynet by 31. mars 2020. The plan should include a reasonable build-up plan to fulfill the requirement by 31. December 2022.
CFO Kjell Fordal +47 905 41 672
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act