DNB announced publication of the amended Capital Requirements Directive and Regulation (CRD IV and CRR) 2019 Specific Provisions Regulation, in context of the systemic risk buffer requirements, in the Government Gazette in April 2020. The amended regulation shall enter into force on the day after it is published in the Government Gazette. DNB is committed to continuing to guarantee the stability of the financial sector amid COVID-19 outbreak. Against this backdrop, on March 17, DNB decided to reduce the systemic risk buffer requirement for three major banks—ING, Rabobank, and ABN Amro. DNB is lowering systemic risk buffer from 3% of global risk-weighted exposures to 2.5% for ING, 2% for Rabobank, and 1.5% for ABN Amro.
The above-mentioned regulation has been amended to allow the announced adjustment of the systemic risk buffer. This reduction in buffer will help banks to support lending to the Dutch economy. In time, the reduction in the buffer requirements will be compensated by a gradual increase in the countercyclical capital buffer to 2% of Dutch risk-weighted exposures. In effect, the total buffer requirement for these banks will eventually return to the current level. The gradual build-up of this buffer will begin once conditions have normalized. DNB had consulted on amendment to the CRD IV and CRR 2019 Specific Provisions Regulation, in connection with the systemic risk buffer, from March 23, 2020 to April 06, 2020.
- Notification (in Dutch)
- Press Release on Lowering Systemic Risk Buffer
- Press Release, March 17, 2020
Effective Date: April 18, 2020
Keywords: Europe, Netherlands, Banking, Systemic Risk Buffer, Systemic Risk, CRD IV, CRR, Specific Provisions Regulation, COVID-19, Regulatory Capital, DNB
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous ArticleCBM Issues Directive on Moratoria on Credit Facilities Amid Pandemic
Next ArticleESAs Propose Regulatory Standards on ESG Disclosures
The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA
The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.
The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.
The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.
In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.
The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.
The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).
EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.