BNG Bank’s prudential capital requirements unchanged
11 December 2020BNG Bank’s prudential capital requirements that had been set by the ECB for 2020 remain in force in 2021. As part of the annual Supervisory Review and Evaluation Process (SREP) BNG Bank has received notification from the European Central Bank stating that the level of prudential capital requirements for 2020 remain in force in 2021. The total SREP capital requirement for BNG Bank is 10.25%, effective as of 1 January 2021.
This total SREP capital requirement consists of (i) the minimum CET1 requirement under Pillar 1 (4.5%), (ii) the Pillar 1 Additional Tier 1 requirement (1.5%), (iii) the Pillar 1 Tier 2 requirement (2%), (iv) the Pillar 2 CET1 capital requirement (Pillar 2 requirement, 2.25%). Including the buffer requirements (the capital conservation buffer (CCB, 2.5% CET1), the countercyclical buffer (CCY, 0.0%) and the Other Systemic Important Institution buffer (OSII, 1.00%)), this results in an Overall Capital Requirement of 13.75%. As of 30 June 2020, the Tier 1 capital ratio amounts to 36%. As such, BNG Bank’s capitalization is substantially above the ECB requirement.