BNP Paribas will face a 10.73% minimum Common Equity Tier 1 (CET1) ratio from Jan. 1, 2027, under an ECB review that raises the CET1 portion of its Pillar 2 requirement by two basis points.
The ECB’s 2026 Supervisory Review and Evaluation Process (SREP) sets the bank’s overall Pillar 2 Requirement (P2R) at 1.90%, up 17 basis points from the 2025 review. BNP Paribas said the revised P2R contributes 1.07 percentage points to the CET1 minimum, up two basis points from its contribution under the 2025 review. The bank said the change leaves its CET1 plans unchanged.
The 10.73% CET1 floor excludes Pillar 2 Guidance (P2G). BNP Paribas’ breakdown includes a 1.75% buffer for other systemically important institutions, a 2.50% capital conservation buffer, a 0.82% countercyclical buffer and a 0.09% systemic buffer, alongside the 1.07% CET1 portion of P2R. The bank linked the P2R outcome to a new methodology introduced by the Single Supervisory Mechanism (SSM).
Effective Jan. 1, 2027, the minimum Tier 1 capital ratio will be 12.58%, including a 1.43% P2R component. The total capital minimum will be 15.06%, including a 1.90% P2R component. The leverage ratio requirement remains 3.85%, while the bank’s P2G is unchanged from 2025 at a range of zero to 100 basis points.
BNP Paribas reported a 12.91% CET1 ratio, a 15.59% Tier 1 ratio, total capital of 17.75% and a 4.44% leverage ratio on Sept. 30. The bank reported headroom above each new minimum on that date.
The CET1 P2R calculation no longer includes the full surcharge for nonperforming loans on credit granted before April 26, 2019. BNP Paribas said the surcharge will be reflected in its CET1 ratio beginning Dec. 31, 2026; the affected loans continued to run off during 2026, and the remaining effect was included in capital planning.
BNP Paribas expects its CET1 ratio to top 13% on Dec. 31, 2026, following its third-quarter results.
