Dexia : Decision of the European Central Bank specifying the prudential approach and the regulatory requirements applicable t...
15 Décembre 2016 - 7:01PM
Inside information - Brussels,
Paris, 15 December 2016, 7:00 PM
Decision of the
European Central Bank specifying the prudential approach and the
regulatory requirements applicable to Dexia as of 1 January
2017
On 12 and 15 December 2016, the
European Central Bank (ECB) disclosed to Dexia its conclusions of
the Supervisory Review and Evaluation Process (SREP). Within this
framework, the ECB, among other things, informed Dexia of the
regulatory requirements, both qualitative and quantitative, in
terms of capital which will apply to Dexia SA and some of its
subsidiaries as of 1 January 2017, in accordance with (EU)
Regulation No. 1024/2013 of the Council of 15 October 2013.
The Total SREP capital requirement,
applicable to Dexia SA in 2017, has been set at 8.625% on a
consolidated basis. This level includes a minimum own funds
requirement of 8.0% (Pillar 1) and an own funds requirement of
0.625% (P2R - Pillar 2 Requirements). Including the Capital
Conservation Buffer, of 1.25% in 2017, this brings the capital
requirement to 9.875%.
These requirements are also
applicable to Dexia Crédit Local, on a consolidated basis.
As a reminder, as at 30 September
2016, the Common Equity Tier 1 (CET1) ratios of Dexia SA and Dexia
Crédit Local amounted respectively to 17.2% and 14.3%. On the basis
of the data as at 30 September 2016, the application of
requirements in force on 1 January 2017 results in a Common Equity
Tier 1 ratio of 12.5% for Dexia SA and 10.0% for Dexia Crédit
Local.
In its conclusions, the ECB also
informed Dexia that the tailored, pragmatic and proportionate
supervisory approach, which had been applied within the framework
of the SREP in 2016, would be renewed in 2017. The purpose of this
approach was taking into account Dexia's specific and unique
situation as a bank in resolution. It was based in particular on
the public nature of the Group's shareholders as well as on the
existence of the funding guarantee established by the Belgian,
French and Luxembourg States in order to preserve financial
stability. This approach, which for example allows proportionate
use of the supervisory powers in view of the constraints of
compliance with the liquidity ratios, assumes that Dexia's
situation does not deteriorate significantly.
Finally, the ECB has also asked Dexia
SA, with respect to the qualitative requirements, to submit a plan
for reclassifying Class B1 preference shares to Class B3 ordinary
shares, with effect from 1 January 2018. As a reminder,
preference shares were issued as part of the recapitalisation of
Dexia SA in December 2012 by the Belgian and French states for EUR
5.5 billion. They benefit from a regulatory status of category 1
core capital instruments (CET1) under a transitional regime which
expires on 31 December 2017. At the end of this period, they will
become Category 2 capital instruments (Tier 2), whereas the
ordinary shares will become CET1 instruments.
In accordance with Dexia SA's articles of association, Class B3
shares do not carry preferential rights. Nevertheless, in the event
of a liquidation of Dexia SA and under the assumption it is
beneficiary, the liquidation supplement would be attributed in
priority to the holders of Class B3 shares, up to an amount of EUR
500 million.
The provisions of Dexia SA's articles
of association provide for the possibility of reclassifying current
Class B1 preference shares as Class B2 preference shares or as
Class B3 ordinary shares, up to the level required for Dexia SA to
comply with the applicable regulatory capital requirements. Within
the framework of this reclassification, Dexia will ensure to
respect the capital requirement set by the ECB as well as the
request for burden sharing imposed by the European Commission,
which assumes that any possible improvement of the financial
situation of Dexia SA will primarily and principally benefit the
States, as guarantors and shareholders.
Press release
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Dexia via Globenewswire
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