Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 13

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 13
---
 In this regard, at the end of 2023 the EBA published the EBA Roadmap, segmented into four stages, in which the changes of the banking package have to be implemented. The EBA will address legal deadlines for the according changes (up to four years after the implementation of the CRR3 and CRD6). Additionally, at the end of 2024 the EBA published its timeline for 2025, defining the guidelines for the implementation of the mandate in this year. The EBA will also be revising and updating the SREP guidelines.

In addition to the publications resulting from the implementation of the banking package in June 2024, the EBA published an update of the report on monitoring of AT1, T2, MREL and TLAC, which provides guidance on the prudential assessment of the instruments other than CET1 instruments and other aspects regarding the eligibility criteria and the terms and conditions of those issuances.

In terms of resolution regulation, Institutions must have an adequate funding structure to ensure that, in the event of financial distress, the institution has sufficient liabilities to absorb losses in order to recover or resolve its positions, while ensuring the protection of depositors and financial stability. For this purpose global systemically important institutions must therefore meet several minimum loss-absorbing requirements, e.g. Total Loss-Absorbing Capacity (TLAC), Minimum Requirement for own funds and Eligible Liabilities (MREL), which are regulated by the CRR and by the Bank Recovery and Resolution Directive (BRRD).

The regulation on the prudential treatment for global systemically important banks was published on 25 October 2022. This modified both the CRR and the BRRD regarding the prudential treatment of global systemically important banks (G-SIBs) with a multiple point of entry (MPE) resolution strategy, as well as the methods for indirect subscription of eligible instruments (Daisy Chains) to meet the minimum requirement for own funds and eligible liabilities. This regulation, known as the 'Quick Fix', covers the following two objectives:

• The inclusion in BRRD and CRR of references to third country subsidiaries to adjust the deduction for the holding of TLAC instruments issued from subsidiaries in third countries based on the excess TLAC/MREL existing in those subsidiaries, as well as the adjustment where the sum of the requirements for own funds and eligible liabilities of G-SIBs under an MPE strategy is higher than the theoretical requirement for the same group under a single point of entry (