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Pillar 2 Requirement (P2R)

The Pillar 2 Requirement (P2R) is a bank-specific capital requirement which applies in addition to, and covers risks which are underestimated or not covered by, the minimum capital requirement (known as Pillar 1). The P2R is binding and breaches can have direct legal consequences for banks.

The P2R is determined via the Supervisory Review and Evaluation Process (SREP). The capital the ECB asks banks to keep based on the SREP also includes the Pillar 2 Guidance (P2G), which indicates to banks the adequate level of capital to be maintained to provide a sufficient buffer to withstand stressed situations. Unlike the P2R, the P2G is not legally binding.

According to Articles 431(1), 433a(1) and 438(b) as introduced by Capital Requirements Regulation II, large institutions (as defined in Article 4(1)(146) CRR (as amended by CRRII)) shall disclose their Pillar 2 Requirements (P2Rs) on an annual basis.

In 2019, the ECB recommended that significant banks consider disclosing the amount and composition of their P2Rs as part of their disclosure practices. The ECB also communicated its intention to publish the consolidated P2Rs of each bank or banking group, and invited banks that have not already disclosed their P2Rs to approve their publication by the ECB. On 28 January 2020, the ECB published for the first time the bank-specific P2Rs.

In reaction to the coronavirus pandemic, on 12 March 2020, the ECB allowed banks to partially use capital instruments that do not qualify as Common Equity Tier 1 (CET1) capital, for example Additional Tier 1 and Tier 2 instruments to meet the P2Rs. As of the date of the application of this decision, institutions were thus allowed to meet their Pillar 2 CET1 requirements with at least 56.25% of CET1 capital and at least 75% of Tier 1 capital.

For the 2020 SREP cycle, as part of the Pragmatic SREP approach, the ECB decided to keep banks’ P2Rs stable in 2021, unless changes are justified by exceptional circumstances affecting an individual bank.

The table below lists the names of the significant banks along with their P2Rs applicable in 2020 and 2021. For each SREP cycle, the part of the P2R (taking into account the decision of the ECB of 12 March 2020) that has at least to be held in form of CET1 is shown. The consent to publish the P2R has been renewed for banks whose P2R has changed from the 2019 SREP cycle, and a new consent has been asked from banks that were not covered by the 2019 SREP cycle.

The table was updated on 28 January 2021.

P2R results

Institution name 2019 P2R
applicable in 2020
2020 P2R
applicable in 2021
Total
Capital
of which
minimum CET1
(from 12.3.2020)
Total Capital of which
minimum CET1
Aareal Bank AG 2.25% 1.27% 2.25% 1.27%
AB SEB bankas 2.00% 1.13% 2.00% 1.13%
ABANCA Holding Financiero S.A. 1.75% 0.98% 1.75% 0.98%
Abanka d.d. 3.50% 1.97% n.a. n.a.
ABN AMRO Bank N.V. 2.00% 1.13% 2.00% 1.13%
AIB Group plc 3.00% 1.69% 3.00% 1.69%
Akcinė bendrovė Šiaulių bankas n.a. n.a. 1.60% 0.90%
Alpha Bank AE 3.00% 1.69% 3.00% 1.69%
AS "SEB banka" 2.25% 1.27% 2.25% 1.27%
AS SEB Pank 2.25% 1.27% 2.25% 1.27%
AS Swedbank 1.70% 0.96% 1.70% 0.96%
AXA Bank Belgium SA 2.75% 1.55% 2.75% 1.55%
Banca Carige S.p.A. 2.75% 1.55% 2.75% 1.55%
BANCA MONTE DEI PASCHI DI SIENA S.p.A. 3.00% 1.69% 2.75% 1.55%
Banca Popolare di Sondrio, Societá Cooperativa per Azioni 3.00% 1.69% 3.00% 1.69%
Banco Bilbao Vizcaya Argentaria, S.A. 1.50% 0.84% 1.50% 0.84%
Banco BPM S.p.A. 2.25% 1.27% 2.25% 1.27%
Banco Comercial Portugués, SA 2.25% 1.27% 2.25% 1.27%
Banco de Crédito Social Cooperativo, S.A. 2.50% 1.41% 2.50% 1.41%
Banco de Sabadell, S.A. 2.25% 1.27% 2.25% 1.27%
Banco Santander, S.A. 1.50% 0.84% 1.50% 0.84%
Bank of America Merrill Lynch International Designated Activity Company 2.30% 1.29% 2.30% 1.29%
Bank of Cyprus Public Company Ltd 3.00% 1.69% 3.00% 1.69%
Bank of Ireland Group plc 2.25% 1.27% 2.25% 1.27%
Bank of Valletta plc 3.25% 1.83% 3.25% 1.83%
Bankinter, S.A. 1.20% 0.68% 1.20% 0.68%
Banque Degroof Petercam SA 3.00% 1.69% 3.00% 1.69%
Banque et Caisse d'Epargne de l'Etat, Luxembourg 1.00% 0.56% 1.00% 0.56%
Banque Internationale á Luxembourg S.A. 1.75% 0.98% 1.75% 0.98%
Barclays Bank Ireland PLC 3% + Max (0.3% or € 100 M) 1.69% 3% + Max (0.3% or € 100 M) 1.69%
BAWAG Group AG 2.00% 1.13% 2.00% 1.13%
Bayerische Landesbank 2.00% 1.13% 2.00% 1.13%
Belfius Bank NV 2.00% 1.13% 2.00% 1.13%
BFA Tenedora de Acciones S.A.U. 2.00% 1.13% 2.00% 1.13%
Biser Topco S.à.r.l. 3.00% 1.69% 3.00% 1.69%
BNG Bank N.V. 2.25% 1.27% 2.25% 1.27%
BNP Paribas S.A. 1.25% 0.70% 1.25% 0.70%
BPCE S.A. 1.75% 0.98% 1.75% 0.98%
BPER Banca S.p.A. 2.00% 1.13% 2.00% 1.13%
Bpifrance S.A. (Banque Publique d'Investissement) 1.50% 0.84% 1.50% 0.84%
C.R.H. - Caisse de Refinancement de l'Habitat 0.75% 0.42% 0.75% 0.42%
Caixa Geral de Depósitos, SA 2.25% 1.27% 2.25% 1.27%
CaixaBank, S.A. 1.50% 0.84% 1.50% 0.84%
Cassa Centrale Banca - Credito Cooperativo Italiano S.p.A. 2.25% 1.27% 2.25% 1.27%
Citibank Holdings Ireland Limited 2.70% 1.52% 2.70% 1.52%
COMMERZBANK Aktiengesellschaft 2.00% 1.13% 2.00% 1.13%
Confédération Nationale du Crédit Mutuel 1.75% 0.98% 1.75% 0.98%
Coöperatieve Rabobank U.A. 1.75% 0.98% 1.75% 0.98%
Crédit Agricole S.A. 1.50% 0.84% 1.50% 0.84%
Credito Emiliano Holding S.p.A. 1.00% 0.56% 1.00% 0.56%
de Volksbank N.V. 2.50% 1.41% 2.50% 1.41%
DekaBank Deutsche Girozentrale 1.50% 0.84% 1.50% 0.84%
Deutsche Apotheker- und Ärztebank eG 1.25% 0.70% 1.25% 0.70%
Deutsche Bank AG 2.50% 1.41% 2.50% 1.41%
Deutsche Pfandbriefbank AG 2.50% 1.41% 2.50% 1.41%
Dexia SA 3.25% 1.83% n.a. n.a.
DZ BANK AG Deutsche Zentral-Genossenschaftsbank 1.75% 0.98% 1.75% 0.98%
Erste Group Bank AG 1.75% 0.98% 1.75% 0.98%
Eurobank Ergasias S.A. 3.00% 1.69% 3.00% 1.69%
Goldman Sachs Bank Europe SE n.a. n.a. 3.00% 1.69%
Hamburg Commercial Bank AG 2.75% 1.55% 2.75% 1.55%
HASPA Finanzholding 1.00% 0.56% 1.00% 0.56%
Hellenic Bank Public Company Limited 3.20% 1.80% 3.20% 1.80%
HSBC Bank Malta p.l.c. 2.25% 1.27% 2.25% 1.27%
HSBC France 3.00% 1.69% 3.00% 1.69%
Ibercaja Banco, S.A. 2.00% 1.13% 2.00% 1.13%
Iccrea Banca S.p.A. - Istituto Centrale del Credito Cooperativo 2.50% 1.41% 2.50% 1.41%
ING Groep N.V. 1.75% 0.98% 1.75% 0.98%
Intesa Sanpaolo S.p.A. 1.50% 0.84% 1.50% 0.84%
Investeringsmaatschappij Argenta NV 1.75% 0.98% 1.75% 0.98%
J.P. Morgan AG n.a. n.a. 3.25% 1.83%
J.P. Morgan Bank Luxembourg S.A. 2.25% 1.27% 2.25% 1.27%
KBC Group NV 1.75% 0.98% 1.75% 0.98%
KBL European Private Bankers S.A. 2.00% 1.13% 2.00% 1.13%
Kuntarahoitus Oyj 2.25% 1.27% 2.25% 1.27%
Kutxabank, S.A. 1.20% 0.68% 1.20% 0.68%
La Banque Postale 2.00% 1.13% 2.00% 1.13%
Landesbank Baden-Württemberg 1.75% 0.98% 1.75% 0.98%
Landesbank Berlin AG 1.50% 0.84% 1.50% 0.84%
Landesbank Hessen-Thüringen Girozentrale 1.75% 0.98% 1.75% 0.98%
Liberbank, S.A. 2.50% 1.41% 2.50% 1.41%
LSF Nani Investments S.à.r.l. (Novo Banco, S.A.)1 3.00% 1.69% 3.00% 1.69%
Luminor Bank AS 2.00% 1.13% 2.00% 1.13%
MDB Group Limited 3.00% 1.69% 3.00% 1.69%
Mediobanca - Banca di Credito Finanziario S.p.A. 1.25% 0.70% 1.25% 0.70%
Morgan Stanley Europe Holding SE n.a. n.a. 2.75% 1.55%
Münchener Hypothekenbank eG 1.50% 0.84% 1.50% 0.84%
National Bank of Greece S.A. 3.00% 1.69% 3.00% 1.69%
Nederlandse Waterschapsbank N.V. 2.25% 1.27% 2.25% 1.27%
Norddeutsche Landesbank -Girozentrale 2.50% 1.41% 2.50% 1.41%
Nordea Bank Abp 1.75% 0.98% 1.75% 0.98%
Nova Ljubljanska banka d.d. Ljubljana 2.75% 1.55% 2.75% 1.55%
OP Osuuskunta 2.25% 1.27% 2.25% 1.27%
Piraeus Bank S.A. 3.25% 1.83% 3.25% 1.83%
Raiffeisen Bank International AG 2.25% 1.27% 2.25% 1.27%
Raiffeisenbankengruppe OÖ Verbund eGen 1.75% 0.98% 1.75% 0.98%
RBC Investor Services Bank S.A. 2.00% 1.13% 2.00% 1.13%
RCB Bank LTD 3.50% 1.97% 3.50% 1.97%
RCI Banque SA 2.00% 1.13% 2.00% 1.13%
Sberbank Europe AG 3.25% 1.83% 3.25% 1.83%
SFIL S.A. 0.75% 0.42% 0.75% 0.42%
Slovenská sporitel'ňa, a.s. 1.50% 0.84% 1.50% 0.84%
Société Générale S.A. 1.75% 0.98% 1.75% 0.98%
State Street Europe Holdings Germany S.a.r.l. & Co. KG 2.00% 1.13% 2.00% 1.13%
Swedbank AS 2.00% 1.13% 2.00% 1.13%
Swedbank, AB 1.80% 1.01% 1.80% 1.01%
Tatra banka, a.s. 1.50% 0.84% 1.50% 0.84%
The Bank of New York Mellon SA 2.00% 1.13% 2.00% 1.13%
UBS Europe SE n.a. n.a. 2.50% 1.41%
Ulster Bank Ireland Designated Activity Company 3.50% 1.97% 3.50% 1.97%
Unicaja Banco, S.A. 1.75% 0.98% 1.75% 0.98%
UniCredit S.p.A. 1.75% 0.98% 1.75% 0.98%
Unione di Banche Italiane Società per Azioni 2.25% 1.27% n.a. n.a.
Volksbank Wien AG 2.50% 1.41% 2.50% 1.41%
Volkswagen Bank GmbH 2.00% 1.13% 2.00% 1.13%
Všeobecná úverová banka, a.s 1.50% 0.84% 1.50% 0.84%

1 LSF Nani Investments S.à.r.l. is a EU parent financial holding company that has Novo Banco, S.A. as its indirect subsidiary. The P2R is only applicable at sub-consolidated level, i.e. at the level of the sub-group of which Novo Banco, S.A. is the parent undertaking.

As of 1 December 2019, the ECB was supervising 117 significant institutions (SIs). Further details in the press release: ECB will directly supervise 117 banks in 2020 SSM. Of these 117, 7 SIs were not part of the 2019 Supervisory Review and Evaluation Process cycle for one of the following reasons: i) designated as significant institution late 2019/beginning of 2020, therefore no 2019 SREP decision has been made, or ii) designated as less significant institution at the beginning of 2020.

As of 01 October 2020, the ECB was supervising 113 significant institutions. The ECB has started directly supervising significant banks in Bulgaria and Croatia following establishment of close cooperation, for which a SREP will be made in 2021.