Rabobank confirms ECB capital requirements as of March 2022
Rabobank has received notification of the ECB’s final decision concerning the own funds requirements that it has to meet as of 1 March 2022, following the results of the 2021 Supervisory Review and Evaluation Process (SREP).
Requirements on a consolidated basis
The 9.9% requirement consists of an 8% Pillar 1 total capital requirement and a 1.90% Pillar 2 requirement. These requirements can be fulfilled by CET1 and partly by AT1 and/or Tier 2 capital. The Pillar 2 requirement increased with 15 basis points from 1.75% to 1.90%.
The CET1 minimum requirement is 5.6% consisting of the minimum Pillar 1 CET requirement (4.5%) and the Pillar 2 CET1 requirement (1.1%). In addition, Rabobank should comply with the combined buffer requirement consisting of a Capital Conservation Buffer (2.5%) and an Other Systemically Important Institutions (O-SII) buffer as imposed by the Dutch Central Bank (“DNB”) of 2%. This translates into an aggregate 10.1% CET1 requirement as of 1 March 2022. Rabobank targets a CET1 ratio of at least 14% and with a CET1 ratio of 17.4% at 31 December 2021 currently operates well above its target.
The 10.1% CET1 requirement does not include the Pillar 2 guidance. The Pillar 2 guidance is not disclosed.
With a fully loaded CET1 ratio of 17.4% on 31 December 2021, Rabobank already complies with the SREP Capital requirement for 2022. With a Tier 1 ratio of 19.2% and a Total capital ratio of 22.6% on 31 December 2021 Rabobank also comfortably meets its total SREP capital requirements.
Requirements on an individual basis
The decision also requires that Rabobank maintains a CET1 ratio of 8.1% on an individual basis. This 8.1% capital requirement includes the minimum Pillar 1 CET requirement (4.5%), the Pillar 2 CET1 requirement (1.1%) and the Capital Conservation Buffer (2.5%). The CET1 ratio of Rabobank on an individual basis amounted to 16.2% on 31 December 2021 which again is well above the requirements.
Parts of this press release are considered by Rabobank to be insider information that directly or indirectly relates to Rabobank as referred to in Article 7 of the Market Abuse Regulation (EU 596/2014) which is disclosed in accordance with Article 17 of the Market Abuse Regulation.
Published: 10 February 2022, 07:15 CET