Welcome to the third part of our series focused on the findings from MIFIDPRU 8 publicly available disclosures. In this section, we will be delving into the topic of firms' own funds and own funds threshold requirements (OFTR), as well as exploring the relationship between the two. Here are our key discoveries: 1) For the majority of firms, retained earnings are the primary contributor to their CET1. 2) OFTR is determined by additional capital requirements that are not included under Pillar 1. 3) We have observed a strong correlation between own funds and OFTR.
Mustafa Cavus
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