Current Report no. 18 (2022)

Request of the Polish Financial Supervision Authority to the Financial Stability Committee for an opinion regarding the other systemically important institution buffer imposed on Santander Bank Polska S.A.

The Management Board of Santander Bank Polska S.A. ("Bank") reports that in the course of administrative proceedings conducted by the Polish Financial Supervision Authority ("KNF"), on 21 September 2022 the Bank received a letter in which the KNF asks the Financial Stability Committee ("FSC") to express its opinion regarding upholding, repealing or amending the KNF's decision of 4 October 2016 as amended by KNF's decision of 14 October 2019 on establishing the other systemically important institution (O-SII) buffer imposed on the Bank.

Pursuant to the KNF's decision of 14 October 2019, the Bank is currently required to maintain the O-SII buffer in the amount equivalent to 0.75% of the total risk exposure amount calculated in accordance with Article 92(3) of the Regulation of the European Parliament and of the Council (EU) No. 575/2013 of 26 June 2013 on prudential requirements for credit institutions and investment firms, amending Regulation (EU) No. 648/2012 ("CRR"), which the Bank communicated in Current Report 34/2019 of 18 October 2019.

As part of the review of the adequacy of the O-SII buffer carried out by the KNF in accordance with Article 46(1) of the Act of 5 August 2015 on Macroprudential Supervision of the Financial System and Crisis Management, the KNF noted that in line with the methodology that takes into account the FSC Recommendation the Bank was awarded 1,211 basis points calculated using the mandatory indicators specified in the Guidelines of the European Banking Authority EBA/GL/2014/10, and using the optional indicators approved under the KNF methodology issued on 11 July 2022.

The KNF has found it purposeful to request the FSC for an opinion on the issue of setting for the Bank the O-SII buffer whose appropriate amount - in accordance with the principles resulting from the methodology set out in the "Proposed calibration of the buffer for other systemically important institutions" contained in the "Short description of the methods used for supervisory assessment in the identification of O-SIIs" published on the KNF website - should be set in the amount equivalent to 1.00% of the total risk exposure.

KNF's decision is to be issued after the FSC has expressed its stance on this matter. Completion of the proceedings and receipt of the decision on the O-SII buffer will be communicated by the Bank by a separate report.

Legal basis:
Article 17(1) MAR - inside information.