The European Central Bank has increased the minimum capital requirements for major banks in Spain as part of a supervisory review and evaluation process (SREP).

The impacted banks are BBVA, Caixabank, Sabadell, and Bankinter.

Caxiabank, the largest bank in the country, on Friday confirmed the news, saying that the EXV had set a minimum threshold of 8.58 per cent for its strictest measure of solvency, or Common Equity Tier 1 (CET1), for 2024. This is up from 8.44 per cent set a year ago.

BBVA’s threshold was raised to 9.09 per cent from 8.72 per cent, while Sabadell and Bankinter have seen their thresholds go from 8.65 per cent and 7.726 per cent to 8.93 per cent and 7.802 per cent respectively.

Malaga-based Unicaja has maintained its solvency threshold, which remains unchanged at 8.27 per cent, while Santander is yet to disclose its regulatory requirements.

The SREP provides an assessment of the challenges facing banks, along with the corresponding solvency requirements and other supervisory measures with which they are expected to comply.

The thresholds will be increased from 1 January 2024.

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