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
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.