DNB adjusts O-SII buffers
Published: 31 May 2023
In 2020, DNB changed the requirements for the composition of systemic buffers when the requirements for systemic risk buffers (SRB) and systemic importance buffers for Other Systemically Important Institutions (O-SII buffers) became aggregated under new European legislation (the CRD), rather than having the higher of the two apply. The SRB was reduced and O-SII buffers were adjusted where necessary. As a result, the following O-SII buffers have applied since 29 December 2020: ING (2.5%), Rabobank (2%), ABN AMRO Bank (1.5%), and BNG and Volksbank (1%).
Annual review leads to adjustment of applicable O-SII buffers
In accordance with Section 105c of the Decree on Prudential Rules for Financial Undertakings (Besluit prudentiële regels Wft – Bpr) in conjunction with Article 131(6) of the Capital Requirements Directive, the O-SII buffer is subject to annual review. Following the most recent review, DNB is lowering the buffer requirement for systemically important banks. The new buffer requirement better reflects the size of the Dutch banking sector relative to the economy, which has declined over the past eight years. Progress has also been made on European regulation and integration, such as the development of the banking union, which allows problems in the banking sector to be addressed more effectively. More information on this adjustment can be found in our Financial Stability Report.
Following this adjustment, the following O-SII buffers will apply from 31 May 2024
ING (2%), Rabobank (1.75%), ABN AMRO Bank (1.25%), and BNG and Volksbank (0.25%). The next buffer review is scheduled for 2024.