Company: INGVF
Filing Date: 2025-03-06
Form Type: 20-F
Source: 0001628280-25-010764
Chunk: 104

Company: ING GROEP NV
Filing Date: 2025-03-06
Form: 20-F
Item: Item 4
Chunk 104
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 to hold more capital during periods of high credit growth (to strengthen capital reserves and moderate the debt markets). Further, Basel III strengthened the definition of capital that had the effect of disqualifying many hybrid securities, as well as increased capital requirements associated with certain business conditions (for example, for credit value adjustments (CVAs) and illiquid collateral) as part of a number of reforms to the Basel II framework. In addition, the Basel Committee and Financial Stability Board (“FSB”) published measures that have had the effect of requiring higher loss absorbency capacity, liquidity surcharges, exposure limits and special 

resolution regimes for, and instituting more intensive and effective supervision of, “systemically important financial institutions” (SIFIs), in addition to the Basel III requirements otherwise applicable to most financial institutions. One such measure, published by the FSB in November 2015, is the Final Total-Loss Absorbing Capacity (TLAC) standard for G-SIFIs, which aims for G-SIFIs to have sufficient loss-absorbing and recapitalisation capacity available in resolution. ING has been designated by the Basel Committee and FSB as a so-called “Global Systemically Important Bank” (G-SIB, or Global Systemically Important Institution- G-SII in the European legislation), since 2011, and by DNB and the Dutch Ministry of Finance as a “other SII” (O-SII) since 2011. Since December 2020 DNB has required ING Group to hold O-SII Buffer in addition to the capital conservation buffer and the countercyclical buffer described above. ING Group is subject to O-SII Buffer of 2.0% (from 31 May 2024 when DNB lowered it from 2.5% that applied previously). In December 2024 DNB announced that it reviewed the identification and buffer requirements for systemically important banks, and maintained 2.0% O-SII Buffer requirement for ING. The higher of G-SIB or O-SII buffers apply, hence ING Group's risk based capital requirements are not affected by G-SII Buffer of 1%. However G-SII buffer increases ING's Leverage Ratio requirement from a regular 3.00% that applies to non G-SII banks to 3.50% (50% of G-SII buffer).
For European banks the Basel III requirements have been implemented through the Capital Requirement Regulation (CRR) and the Capital Requirement Directive (CRD