Dutch Central Bank Sets Out Capital Buffers

By Robin van Daalen 

AMSTERDAM--The Dutch Central Bank on Tuesday detailed additional capital buffer requirements for the four systemic banks in the Netherlands.

On top of the requirement of a capital ratio of 7% of risk-weighted assets, as set out under Basel III rules, the Dutch central bank, or DNB, said ING Groep NV's ING Bank, Rabobank and ABN AMRO Bank will need additional capital of 3% of risk-weighted assets, while SNS Bank requires 1% extra.

DNB announced its intention to raise capital buffers by 1% to 3% of risk-weighted assets for systemic banks three years ago, and the Dutch lower house of parliament last week adopted the CRR/CRD IV Implementation Act, which lays down the basis for the systemic buffers.

While these buffers will be phased in between 2016 and 2019, capital buffers for the banks involved were already above the levels set at the end of last year.

Rabobank said Tuesday said it already complies with the new DNB requirement, as its capital ratio stood at 13.5% at the end of 2013.

ING's capital ratio stood at 11.7% at the end of 2013, ABN Amro's at 14.4% and SNS had a capital ratio 16.6%.

Write to Robin van Daalen at [e-mail]