Capital requirement 2024 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 remains unchanged and is determined at 2.25 percent. The updated capital requirement is effective from 1 January 2024.

The total SREP capital requirement for NWB Bank amounts to 10.25%. This is the sum of the total Pillar 1 requirement of 8% and the Pillar 2 requirement of 2.25%. The Overall Capital Requirement amounts to 12.75% if the capital conservation buffer (2.5%) is also added. Furthermore, the Dutch Central Bank (DNB) has decided to impose a countercyclical buffer (1%) for lending in the Netherlands starting 25 May 2023.

As of 30 June 2023, the Tier 1 capital ratio excluding profit for the year amounts to 44.3%. As such, NWB Bank’s capitalization is substantially above the ECB requirement.