No additional interest discount on TLTRO for BNG Bank for the time being

26 November 2021

Due to a procedural error, BNG Bank did not comply with a reporting requirement on time to be eligible for the additional 0.5% interest discount on the ‘Targeted Longer-Term Refinancing Operation’ (TLTRO). As a result, the bank has not been granted this discount for the first period (24 June 2020 to 23 June 2021). The discount for this period amounts to EUR 57 million.

BNG Bank does not believe that its clients should suffer any negative consequences from this. They will retain the attractive rates already granted to them under the TLTRO. The amount of EUR 57 million will be charged to the interest result for 2021. However, BNG Bank believes that this outcome should not affect the dividend payment to shareholders. The bank therefore intends to compensate its shareholders for the non-granted discount in the dividend proposal for 2021.

BNG Bank overlooked one data file. The bank acknowledges and regrets that it made this error and has taken the necessary measures to prevent this from happening in the future. BNG Bank does materially meet the criteria for allocation and believes that not granting the additional interest rebate is disproportionate to the error made. BNG Bank is making every effort in talks with the Dutch central bank to reach a reasonable outcome that does justice to the purpose of the TLTRO and the fact that BNG Bank does materially meet the criteria for allocation. It is nevertheless uncertain whether this additional interest discount will eventually become available to BNG Bank.

BNG Bank has participated in the European Central Bank’s TLTRO since 2020 because of its attractive conditions. The purpose of this instrument is to stimulate the real economy by providing liquidity under favourable financing conditions to specific target groups, including housing associations and healthcare institutions.

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