Rabobank: 2018 EU-Wide Stress Test Results
Rabobank took part in the 2018 EU-wide stress test conducted by the European Banking Authority (EBA), in cooperation with De Nederlandsche Bank (DNB), the European Central Bank (ECB), and the European Systemic Risk Board (ESRB).
Rabobank notes the announcements made today by the EBA on the EU-wide stress test and fully acknowledges the outcomes of this exercise.
The 2018 EU-wide stress test does not contain a pass fail threshold and instead is designed to be used as an important source of information for the purposes of the SREP. The results will assist competent authorities in assessing Rabobank’s ability to meet applicable prudential requirements under stressed scenarios.
The adverse stress test scenario was set by the ECB/ESRB and covers a three-year time horizon (2018-2020). The stress test was carried out applying a static balance sheet assumption as at December 2017, and therefore does not take into account future business strategies and management actions. It is not a forecast of Rabobank’s profits. As Rabobank is still in the midst of implementing its strategic objectives the results only partly capture the effects of these objectives.
In the baseline scenario Rabobank’s fully loaded common equity Tier 1 ratio (CET1) would amount to 16.0% as per FYE 2020. Under the adverse scenario the CET1 ratio would end at 11.4% as per FYE 2020.
Rabobank remains committed to its strategic goals. The outcome of the exercise does not result in additional management actions.
The full results for Rabobank are available on the EBA website (via the link below).