trending Market Intelligence /marketintelligence/en/news-insights/trending/qZMVpY5o-OekwyZOXGD1Fw2 content esgSubNav
In This List

ECB sets 2020 SREP capital requirements for KBC Group, ABN Amro

Blog

Banking Essentials Newsletter: January 11th Edition

Blog

Banking Essentials Newsletter December 21st Edition

Blog

The Road to Basel IV: Navigating the challenge facing European banks

Blog

Basel Framework- Utilizing data to analyze the capital position of European banks.


ECB sets 2020 SREP capital requirements for KBC Group, ABN Amro

KBC Group NV will have to maintain a combined common equity Tier 1 ratio of 11.1% from Jan. 1, 2020, up from 10.7% previously because of increased countercyclical buffers in some of the group's core countries.

The ECB mandated the bank to maintain the Pillar 2 requirement at 1.75% of CET1 and Pillar 2 guidance at 1.0% of CET1, following its supervisory review and evaluation process. The 11.1% requirement also includes a Pillar 1 requirement of 4.5%, other systemically important institutions buffer of 1.5% and a capital conservation buffer of 2.5% as confirmed by the Belgian central bank.

The Belgium-based banking group's CET1 ratio stood at 15.4% at the end of the third quarter — well above the new requirement.

Meanwhile, Netherlands-based ABN Amro Bank NV will have to maintain a CET1 ratio of 12.09% after the SREP process. This includes a Pillar 1 minimum requirement of 4.5%, a Pillar 2 requirement of 2%, a capital conservation buffer of 2.5% and a 3% systemic risk buffer imposed by the Dutch Central Bank.

ABN Amro's CET1 ratio stood at 18.2% as of September-end and remains positioned above the new requirement.