DNB Reduces Systemic Risk Buffer Requirement for Certain Banks
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.
Related Links
- 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
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous Article
CBM Issues Directive on Moratoria on Credit Facilities Amid PandemicNext Article
ESAs Propose Regulatory Standards on ESG DisclosuresRelated Articles
CFPB Finalizes Rule on Small Business Lending Data Collection
The Consumer Financial Protection Bureau (CFPB) published a final rule that sets out data collection requirements on small business lending, under section 1071 of the Dodd-Frank Act.
BCBS to Consult on Pillar 3 Climate Risk Disclosures by End of 2023
The Bank for International Settlements (BIS) published a summary of the recent Basel Committee (BCBS) meetings.
FINMA Approves Merger of Credit Suisse and UBS
The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.
BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks
The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.
US Congress Report Examines Data Privacy and Cybersecurity Regulations
The U.S. Congressional Research Service published a report on banking, data privacy, and cybersecurity regulation.
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
EU to Conduct One-Off Scenario Analysis to Assess Transition Risk
The European authorities recently made multiple announcements that impact the banking sector.
APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
