Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 2

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 2
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 contained. The process of easing monetary policies is expected to have an impact on net interest income which is expected to be offset by an increase in credit volumes in an environment where a significant increase in non-performing loans is not expected.

Banks have maintained high solvency levels and have absorbed the impact of the gradual withdrawal of liquidity being carried out by major central banks, which has been observed in stress tests conducted by supervisors and multilateral agencies.

The sector's outlook for 2025 is positive, with returns slightly lower than those recorded in 2024 but well above those observed in the last decade. In the short term, the main risks facing the sector are essentially exogenous, derived mainly from the potential impact of geopolitical risks on the macroeconomic environment.

The 2024 regulatory agenda is similar to that of 2023, with the focus on issues relating to supervision, sustainability, digitalization and retail banking.

With regard to capital requirements, an agreement on Basel 3 was reached during the year, meaning that the reform will apply in Europe from January 1, 2025. However, the implementation of the Fundamental Review of the Trading Book (FRTB) was postponed to January 2026 in order to eliminate the differences between the criteria of the individual countries and to take into account the different effects in the individual countries. Intense debates in the US and the UK have also delayed implementation. In addition, the Basel Committee continued to work on the new regulatory framework for crypto assets.

In Europe, discussions were also centred on the capital buffer framework (potential revision under consideration), and on securitisations, which are expected to be relaunched in a scenario marked by a boost in competitiveness.

#### Public policy
We have a strong commitment to our clients to conduct our business in a simple, personal and fair way. We are also committed to regulators and supervisors, both with regard to the regulation and frameworks that affect our business, as well as to the interests of our customers.

Promote regulation that allows banks to finance the economy and be profitable and investable

Banks must continue to play their fundamental role of financing the economy and promoting growth in a competitive way, with profitability as their first line of defence:

| It is important that, when designing regulation and supervision, policymakers and regulators consider the need for a balance between preserving financial stability and supporting economic growth.                                                                                                 |
| Lack of growth is the biggest threat to financial stability. As such, it is crucial to promote growth in order to finance the current challenges: dec