The countercyclical capital buffer (CCyB) is a macroprudential instrument that aims to protect banks against systemic risks arising from excessive credit growth in a member state. It is a variable add-on to the minimum capital requirements of up to 2.5% of risk-weighted assets – or even higher, should the circumstances dictate.
Since January 2016, DNB publishes the CCyB add-on on a quarterly basis, in accordance with the prevailing rules and regulations. Banks are required to apply the add-on to their exposures to Dutch counterparties. As a rule, CCyB decisions are internationally recognised instruments, which means that non-domestic banks must apply the add-on set by DNB to their Dutch exposures.
At the last decision in September 2019, DNB left the CCyB unchanged at 0 percent. One of the main considerations underlying this decision has been the subdued trend of credit growth. This situation has not fundamentally changed: lending is still showing below-trend growth (Chart 1). This credit gap, as it is known, is internationally considered as one of the key indicators for the CCyB. Besides the credit gap, DNB also considers other variables such as trends in real estate prices and credit growth in subsectors (Table 1). See the Financial Stability Report Autumn 2019 (link) for further analysis of these developments.
Based on these developments, DNB presently sees no reason to activate the CCyB for the Netherlands, and has decided to leave the CCyB unchanged at 0%.
1. Difference between (a) the ratio of loans extended to the non-financial private sector to GDP and (b) the long-run trend of this ratio as calculated in ESRB (2014), Operationalising the countercyclical capital buffer: indicator selection, threshold identification and calibration options, Occasional Paper No. 5.
2. The ratio of the mortgage amount to the value of the property at the time the morrtgage is taken out.
3. The ratio of the mortgage amount to the income of the borrower at the time the mortgage is taken out.
DNB has reviewed the identification and buffer requirements for systemically important banks and maintains the current requirements.
Read more DNB maintains buffers for systemically important banks
On Tuesday 5th November from 3:00-4:45 PM CET DNB will organize a physical information session about fit and proper assessments.
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On 30 September 2024, DNB published the amendments to the two policy rules for the deposit guarantee scheme (DGS). These amendments were publicly consulted in June 2024.
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As at 30 June 2024, Dutch households held some €15 billion in bank deposits in other euro area countries, the latest figures from DNB and the European Central Bank (ECB) show. This means foreign savings keep growing.
Read more Dutch households see foreign bank deposits double in two years
