In 2015, DNB required ING, Rabobank and ABN Amro to hold a systemic risk buffer
Due to the fact that they have the highest levels of systemic importance, ING Bank, Rabobank and ABN AMRO were required – in line with previous communication – to hold an additional buffer of 3% of risk-weighted assets.
The systemic risk buffer requirement for the three Dutch major banks, ING, Rabobank and ABN Amro, has been reduced by DNB as recently announced1
The new buffer rates for ING, Rabobank and ABN Amro are respectively 2,5%, 2% and 1,5% of risk-weighted assets. This frees up capital which the banks can 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, which will ultimately restore the aggregate buffer requirements for these banks to current levels.
The buffers are applicable in the course of 2020
Article 105c(3) of the Decree on prudential requirements (“Besluit prudentiële regels Wft”) and Article 105e of this Decree in conjunction with Article 133(10)(b) CRD IV require DNB to evaluate the O-SII buffer at least once a year and the systemic risk buffer at least every two years.
Furthermore, DNB is aware of the implications of the CRD V which are foreseen end 2020, and will evaluate the systemic buffers this year
The CRD V amends the rules for the macroprudential buffers, such as the Other Systemically Important Institution buffer and the SRB. While currently only the highest of these buffers counts, the CRD V makes these buffers additive. Continuation of the current buffer policy would then result in higher buffers for the largest banks. In light of this, DNB will evaluate its systemic buffers in the course of 2020. The aim is that double counting and disproportionate outcomes should be avoided. DNB expects to provide more clarity on this in the summer of this year.
1See DNB’s press release on 17 March 2020: https://www.dnb.nl/en/news/news-and-archive/persberichten-2020/dnb387870.jsp, and its further clarification in DNB bulletin of 23 March 2020: https://www.dnb.nl/en/news/news-and-archive/dnbulletin-2020/dnb387914.jsp.