Société Générale / Risk report 2021 - Pillar 3 2020

5 CAPITAL MANAGEMENT AND ADEQUACY TLAC AND MREL RATIOS PILLAR 3 - 2021 | SOCIETE GENERALE GROUP | 56 TABLE 16: MAIN SUBSIDIARIES’ CONTRIBUTIONS TO THE GROUP’S RWA (In EURm) Crédit du Nord Rosbank Komerčni Banka IRB Standard IRB Standard IRB Standard Credit and counterparty credit risks 17,075 3,162 598 7,862 10,822 1,726 Sovereign 0 611 536 82 65 1 Financial institutions 75 4 - 782 792 7 Corporate 9,681 787 - 3,569 6,415 1,176 Retail 5,445 1,001 - 3,051 3,348 45 Equity investments 1,687 94 62 - 201 1 Other non-credit obligation assets - 666 - 378 - 497 Securitisation 186 Market risk 62 36 31 Operational risk 1,110 1,157 639 TOTAL 2020 21,409 9,652 13,217 TOTAL 2019 21,456 9,562 13,295 TLAC ANDMREL RATIOS 5.6 The Total Loss Absorbing Capacity (TLAC) requirement which applies to Societe Generale is 16% of RWA until 1 January 2022 and 18% of RWA thereafter, to which the conservation buffer of 2.5%, the G-SIB buffer of 1% and the countercyclical buffer must be added. As at 31 December 2020, the global TLAC requirement thus stood at 19.54% of Group RWA. The TLAC rule also provides for a minimum ratio of 6% of the leverage exposure from 2019 before reaching 6.75% of the leverage exposure starting from January 2022. As at 31 December 2020, Societe Generale reached a TLAC ratio of 28.6% of RWA and 9.2% of leverage exposure. The Minimum Requirement for own funds and Eligible Liabilities (MREL) has applied to credit institutions and investment firms within the European Union since 2016. Contrary to the TLAC ratio, the MREL is tailored to each institution and regularly revised by the resolution authority. Throughout 2020, Societe Generale complied with the 8% (until May) and the 8.51% (after May) ratio of total own funds and eligible liabilities, as required by its resolution authority, the Single Resolution Board.