Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 100

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 100
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 and optimizing capital consumption

Regarding securitization funds without risk transfer, Grupo Santander retains the majority of the positions of the originated securitization funds, so they do not meet the

regulatory conditions that would allow the significant transfer of risk.

For these funds, capital is calculated for the securitized exposures as if they had not been securitized.The underlying assets securitized in the funds launched by Grupo Santander consist of mainly mortgages and consumer loans.

2024 Pillar 3 Disclosures Report 169

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

6.3.5. Significant Risk Transfer (SRT) Significant Risk Transfer (SRT) is a mechanism by which a financial institution transfers a substantial portion of the credit risk associated with a portfolio of assets to external investors, generally through securitization transactions or structured credit instruments.

| Significant risk transfer (SRT) overview                                                    |     |                                                                                                                                                                                                                                                                  |     |                                                                                   |     |                                                                                                                                                                                                              |
| Banks use SRTs as a de-risking strategy, purchasing credit protection on credit portfolios. |     |                                                                                                                                                                                                                                                                  |     | Investors see SRTs as an attractive risk-return investment for their stakeholders |     |                                                                                                                                                                                                              |
|                                                                                             |     |                                                                                                                                                                                                                                                                  |     |                                                                                   |     | Unique platform of assets:                                                                                                                                                                                   
 SRT investors benefit fromobtaining access to banks’ wide range of portfolios,ranging across product categories (e.g. mortgages, auto loans, SMEs, etc), segments (e.g. retail), stages (e.g. NPLs) and more |
|                                                                                             |     | Optimal risk-return:                                                                                                                                                                                                                                             
 Banks’ wide portfolio offerings enable SRT investors to invest inassets that are core business to the bank,through securitization technology to achieve investors´ expected risk-return (e.g.; senior, mezzanine, junior /synthetic vs cash/ funded vs unfunded) |     |                                                                                   |     |                                                                                                                                                                                                              |
|                                                                                             |     | Highly-supervised transactions:                                                                                                                                                                                                                                  
 SRT transactions are heavily supervisedby the regulator, with a wide range of regulations and mechanismsthat provide investors with a high degree of standardization, transparency and protection                                                                |     |                                                                                   |     |                                                                                                                                                                                                              |

This transfer allows the institution to optimize its regulatory capital management, in line with the requirements of