DNB verhoogt de contracyclische kapitaalbuffer (CCyB) van 1,0% naar 2,0%

The Dutch Central Bank (DNB) published a news release stating that it is increasing the countercyclical capital buffer (CCyB) from 1.0% to 2.0%.
This requirement applies to all banks operating in the Netherlands, both domestic and foreign, with outstanding loans. This change will impose an additional capital charge of approximately €3.4 billion on the Dutch banking sector as a whole.
Banks must meet this requirement by 31 May 2024, assuming the current risk environment remains stable.
The CCyB is designed to enhance banks‘ resilience as cyclical risks increase. It allows banks to release accumulated buffers when risks materialize, providing them with additional capacity to absorb losses during economic downturns. This, in turn, supports lending to businesses and consumers and mitigates the immediate impact of financial crises on the real economy.
The CCyB is applied to domestic exposures, and there is a mandatory reciprocity requirement of up to 2.5% for foreign banks with exposures in the Netherlands.
The goal is to maintain a 2.0% CCyB in a standard risk environment. The size of the CCyB is determined based on various indicators, including the credit-to-GDP gap and comparisons to structural trends.
The decision to raise the CCyB to 2.0% is influenced by the current risk environment, which remains elevated. While economic activity has been relatively stable and banks are in a robust financial position, some indicators suggest higher cyclical risks. These include increased risk appetite among institutional investors, falling real estate prices, and growing concerns about debt sustainability for companies and governments.
Given these factors, the decision was made to announce the activation of the 2.0% CCyB in the Financial Stability Report of 31 May 2023, with the buffer taking effect on 31 May 2024, in accordance with applicable laws and regulations.