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ING, KBC disclose ECB capital requirements


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ING, KBC disclose ECB capital requirements

ING Groep NV said it will be required to maintain a common equity Tier 1 ratio of 10.4% in 2018 under the ECB's annual Supervisory Review and Evaluation Process.

The Dutch bank noted that its transitional and fully loaded CET1 ratios stood at 14.5% as of Sept. 30. It had a 9.02% phased-in CET1 requirement in 2017 and expects its 2019 fully loaded requirement to be 11.80%, owing to the phasing in of countercyclical and systemic risk buffers.

Belgium's KBC Group NV will have an SREP fully loaded CET1 requirement of 10.6%, including a 1.75% Pillar 2 requirement and a 1.0% level of so-called Pillar 2 guidance. KBC noted that Czech and Slovak authorities' decision to gradually increase their countercyclical buffers equates to an additional 0.2% CET1 requirement at KBC group level, bringing its consolidated countercyclical buffer requirement to 0.35%.

The National Bank of Belgium requires KBC to have a capital buffer as a systemically important bank of 1.5% in 2018, along with a 1.875% capital conservation buffer.

KBC's fully loaded CET1 ratio was 15.9% as of Sept. 30. The bank added that it would detail the impacts of the Basel Committee's recent finalization of the Basel III reforms with its full-year 2017 results.

Rabobank said Dec. 15 that its SREP total capital requirement is 9.75% and its CET1 minimum requirement is 6.25%. Including a capital conservation buffer of 1.875% and a systemic risk buffer of 2.25%, the bank must maintain a 10.375% aggregate CET1 requirement for 2018.

The figure will rise in 2019 as the capital conservation and systemic risk buffers rise to 2.5% and 3%, respectively, resulting in an expected aggregate CET1 requirement of 11.75%. Rabobank's target is for a CET1 ratio of at least 14%.

ABN AMRO Group NV said Dec. 20 that ABN AMRO Bank NV is required to maintain a CET1 ratio of 10.4% for 2018.