BBVA trims capital target following ECB relief measures

Spanish lender targets 225-275bp CET1 management buffer

BBVA saw its solvency requirement drop 68 basis points in the first quarter thanks to Covid-19 relief measures implemented by the European Central Bank (ECB).

The Spanish lender’s regulatory Common Equity Tier 1 (CET1) capital minimum fell to 8.59% from 9.27% of risk-weighted assets (RWAs) after the central bank brought forward changes to how Pillar 2 charges are calculated. BBVA also saw the countercyclical capital buffer (CCyB) charge applied to it fall as a number of countries deactivated

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