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29 December 2020 Supervision Supervision label Factsheet

On 23 April 2020, DNB reduced the systemic buffer requirement for ING, Rabobank and ABN Amro, to support the provision of credit1

The systemic buffer requirements of ING, Rabobank and ABN AMRO were decreased from 3% to respectively 2,5%, 2% and 1,5% of risk-weighted assets. This freed up capital which the banks could use to support lending to the Dutch economy. In due course, the lower requirement will be offset by a gradual increase of the countercyclical capital buffer.

DNB now modifies the composition of the systemic buffer to better align them to the reviewed Capital Requirement Directive (CRD V)
The CRD V amends the rules for the macroprudential buffers, such as the Other Systemically Important Institution (O-SII) buffer and the Systemic Risk Buffer (SRB). Before, only the highest of these two buffers counted for a bank. The CRD V, however, makes these buffers additive. In light of this, DNB already announced in its Financial Stability Report autumn 2020 that it intended to abolish the SRB and to amend the O-SII buffer so that the capital requirements remain constant.2

The following systemic buffers are then applicable as of 29 December 2020
For the three major banks the following O-SII buffers apply:

  • ING Bank 2,5%, Rabobank 2% and ABN AMRO Bank 1,5%.
  • For Volksbank and BNG the O-SII buffer remains at 1%.
  • The SRB is abolished for ING Bank, Rabobank and ABN AMRO Bank.

Article 105c and Article 105e of the Decree on prudential requirements (“Besluit prudentiële regels Wft”) in conjunction with Article 131 and 133 of the CRD, require DNB to evaluate the O-SII buffer at least once a year and the systemic risk buffer at least every two years.

1 See DNB’s press release on 17 March 2020 and its further clarification in DNB bulletin of 23 March 2020
2 See here: OFS Fall 2020

sector

  • Banks