ECB Trims Santander's Pillar 2 Capital Requirement for 2027

MT Newswires · 2d ago
04:01 AM EDT, 10/28/2026 (MT Newswires) -- The European Central Bank lowered Banco Santander's (SAN.MC) Pillar 2 capital requirement, effective Jan. 1, 2027, following its annual supervisory review and evaluation process. The Spanish bank's requirement was reduced to 1.65% at a consolidated level from 1.74% in 2026, with at least 0.93% to be covered by Common Equity Tier 1 capital, according to a Wednesday release. The cut reflects the removal of add-ons tied to the ECB's supervisory expectations on provisioning for non-performing exposures. Santander's minimum CET1 and total capital requirements will rise by 7 and 3 basis points, respectively, to 9.92% and 14.14%.