Capital requirement updated for NWB Bank

The European Central Bank (ECB) has updated the capital buffer requirement imposed on NWB Bank as part of the yearly Supervisory Review and Evaluation Process (SREP). The requirement for the bank specific Pillar 2 requirement has been set at 2 percent. The updated capital requirement is effective from 1 March 2022.

Last year,  the Pillar 2 requirement amounted to 2.25%. The total SREP capital requirement for NWB Bank amounts to 10%. This is the sum of the total Pillar 1 requirement of 8%, the Pillar 2 requirement of 2%. The Overall Capital Requirement amounts to 12.50% if the capital conservation buffer is also added.

As of 30 June 2021, the Tier 1 capital ratio excluding profit for the year amounts to 47,8%. As such, NWB Bank’s capitalization is substantially above the ECB requirement.