Annual update of Groupe BPCE's MREL requirements

March 31, 2023

Groupe BPCE manages its MREL(1) ratios well above its requirements


ACPR, the French Prudential and Resolution Supervision Authority, implementing the decision of the Single Resolution Board, has just notified the updated requirements applicable to Groupe BPCE in 2023.

The updated total MREL requirement is set in the notification at 25.0%(2) of the Group's risk-weighted assets or RWAs. It is set at 6.2% of the leverage ratio exposure.

Regarding the subordination requirement, Groupe BPCE complies with article 92a 1. (a) of CRR regulation
n° 575/2013 providing for a requirement of 21.5% of RWAs. The subordination requirement based on the leverage ratio exposure is set in the notification at 6.75% in application of article 92a 1. (b) of the CRR regulation.

Groupe BPCE remains well above its updated requirements: the Group's total MREL ratio was 30.5% based on RWAs at the end of December 2022 and the Group's subordinated MREL ratio (similar to the TLAC ratio) was 23.8% at the end of December 2022. These ratios were respectively 10.1% and 7.9% of the leverage ratio exposure at the end of December 2022.

(1) - Minimum Requirement for Own Funds and Eligible Liabilities.
(2) - Requirement including a countercyclical buffer applicable to the Group of 0.03%.