DNB sees no reason to activate the countercyclical capital buffer (CCyB) for the Netherlands in December 2019. In September 2019 also, the CCyB had remained at 0%. One of the main considerations underlying this decision has been the subdued trend of credit growth and this situation has not fundamentally changed.
Besides the credit gap, DNB considers other variables such as trends in real estate prices and credit growth in certain sub-sectors. Since January 2016, DNB has been publishing 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 recognized, which means that non-domestic banks must apply the add-on set by DNB to their Dutch exposures. The countercyclical capital buffer 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.
Related Link: Press Release
Keywords: Europe, Netherlands, Banking, CCyB, Credit Risk, Regulatory Capital, Basel III, DNB
Previous ArticleISDA Publishes Agreement to Simplify Reporting of Derivatives in EU
HM Treasury notified that, after considering all responses, the government intends to bring forward further legislation, when the Parliamentary time allows, to address issues identified in the consultation on supporting the wind-down of critical benchmarks.
EIOPA launched the 2021 stress test for the insurance sector in EU.
UK authorities jointly published the third edition of Regulatory Initiatives Grid setting out the planned regulatory initiatives for the next 24 months.
EC is requesting feedback on the proposed Commission Delegated Regulation on the content, methodology, and presentation of information that large financial and non-financial undertakings should disclose about their environmentally sustainable economic activities under the Taxonomy Regulation.
OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.
Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.
ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.
EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.
ECB published its response to the targeted EC consultation on the review of the bank crisis management and deposit insurance framework in EU.
BCBS, CPMI, and IOSCO (the Committees) are inviting entities that participate in market infrastructures and securities markets through an intermediary as well as non-bank intermediaries to complete voluntary surveys on the use of margin calls.