Q3 2020 Business Update amid Covid-19
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Assets and liabilities: LT funding —
Targeting MPE approach
•
•
Resolution strategy
Direct presence in 7 geographically connected countries
Erste Group's setup suggests a multiple point of entry (MPE)
resolution strategy
• When determined, MREL needs are likely to be met with a
mix of own funds, senior non-preferred and senior preferred
instruments
Majority ownership
Minority ownership
ERSTEŚ
Group
CZ
SK
AT
HU
RO
HR
RS
.
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•
•
Austrian resolution group
Major entities within the Austrian resolution group*:
Erste Group Bank AG
Erste Bank Oesterreich and its subsidiaries
All other savings banks of the Haftungsverbund
Subordination requirement does not seem to be a limiting
factor
Binding MREL targets for the Austrian, Slovak, Romanian,
Hungarian and Czech resolution groups have been received;
for Croatia the first binding target is expected in 2021
All CEE resolution groups with a binding decision received in
2020 will receive a transition period until year-end 2023
enabling them to reach their MREL targets gradually
*) Subject to joint decision of resolution authority
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