Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 88

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 88
---
,384 |      |     | 21,194 |      |     |    |  4,227 |      |      |  3,799 |      |
| Sponsor                                                        |     | 403 |         |      | —   |        |      |     | 60 |        |      |      |      — |      |
| Total                                                          |     |     | 100,323 |      |     | 68,684 |      |     |    | 15,704 |      |      | 11,420 |      |
| *The EAD considered is before deductions (exposures RW 1.250%) |     |     |         |      |     |        |      |     |    |        |      |      |        |      |

#### 6.1 Introduction
Historically, banks used deposits to fund loans that they kept on their balance sheets until maturity. Over time, however, this model of banking started to change. Banks began expanding their funding sources to include bonds financing, commercial paper financing, and repurchase agreement (repo) funding. Bank credit has shifted from traditional originate-to-hold to “originate-to-distribute” business model. In the originate to distribute “OTD” business model, adopted by most banks to a different extend, the originator of a loan sells it to third parties through a securitization process or using other risk transfer strategies.

| "OTD"  structures: originate-to-distribute                                                                                                                                 |
| Please note that this overview is a reference to the paper from the ESRB (European Systemic Risk Board): The European significant risk transfer securitisation market pp.7 |

better risk sharing, reducing concentration of credit risk, minimizing overall funding cost and, under certain conditions, reducing regulatory capital. Furthermore, the process frees up capital for new lending, provides income from the sale of the loans and generates fees from continuing servicing of the underlying loans (collecting interest and principal repayments and passing them on the holders of securities). In summary, the originate-to-distribute model has many advantages, such as, capital efficiency, optimization of the balance sheet, increased returns and the capacity to enhance financial system stability.

158 2024 Pillar 3 Disclosures Report

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

### 6.2. Management of the securitisation activity
This section