Rabobank confirms ECB capital requirements
OREANDA-NEWS. Rabobank has received notification of the ECB's final decision concerning the capital requirements that it has to meet as of 1 January 2016, following the results of the 2015 Supervisory Review and Evaluation Process (SREP).
The decision requires that Co?peratieve Rabobank U.A. (“Rabobank”) maintains a Common Equity Tier 1 capital ratio of 9.5% on a consolidated basis. This 9.5% capital requirement includes: the minimum Pillar 1 requirement (4.5%) and the Pillar 2 requirement plus the capital conservation buffer (5.0%). In addition, the 3% systemic risk buffer imposed by the DNB will result in a 0.75% surcharge during 2016 and will continue to be phased-in 0.75% per annum in 2017, 2018 and 2019. With a CET1 ratio of 13.2% as at 30 June 2015, Rabobank already complies with the new ECB and DNB requirements for 2016. The fully loaded CET1 ratio of Rabobank was 11.8% as at 30 June 2015.
The decision also requires that Rabobank maintains a Common Equity Tier 1 capital ratio of 9.5% on an unconsolidated basis. This 9.5 % capital requirement includes: the minimum Pillar 1 requirement (4.5%) and the Pillar 2 requirement plus the capital conservation buffer (5.0%). The unconsolidated CET1 ratio of Rabobank was 15.9% per 30 June 2015.
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