Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 10

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 10
---
 Article 4 No. 146 and 147 CRR) can be found within the Pillar 3 reports of the respective subsidiary as published on the corresponding website.

Each banking subsidiary is directly regulated by their local banking supervisors, who set and monitor their local capital and liquidity adequacy requirements. In most jurisdictions non-banking financial subsidiaries are also subject to the supervision and capital requirements of local regulatory authorities.

The regulators of the Group’s banking entities outside the EEA are at varying stages of implementation of the Basel framework. Local regulation in 2024 may have been implemented on the basis of Basel I, II or III.

For more information about the international Group structure see Appendix II.

2024 Pillar 3 Disclosures Report 15

| Index |     | Introduction |     | Capital |     | Risks |     | Risk taker's remunerations |     | Appendices |

#### 1.3. Regulatory framework
1.3.1. Prudential framework 2024: highlights of solvency and resolutions

Credit institutions must meet a series of minimum capital and liquidity requirements. These minimum requirements are regulated by the European Capital Requirements Regulation (CRR) directly applicable under the Spanish legal system, and by the Capital Requirements Directive (CRD).

On 19 June 2024, the final update of the banking package was published in the Official Journal of the European Union Regulation (EU) 2024/1623 (CRR3) amending the CRR as regards requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor and also Directive (EU) 2024/1619 (CRD6), amending the CRD as regards requirements for supervisory powers, sanctions, third-country branches, and environmental, social and governance risks.

The update of the banking package aims firstly to implement Basel III final reforms and, secondly, to enhance the standardisation of banking supervision in the European Union (EU).

The CRR3 introduces greater sensitivity to standardised metrics, to reduce the variability of risk-weighted assets between institutions using internal models for capital requirement calculation and facilitate the comparability among banks. The main changes introduced are as follows:

•

#### Output floor
: A risk-weighted assets floor is introduced, consisting of 72.5% of the total risk exposure amount calculated using standardised methods. The aim is to limit variability and excessive reduction in capital consumption in institutions that apply internal models. The regulation includes a transitory period to give institutions sufficient time