BNG Bank bonds qualify as Level 1 Assets

  • update:    
The Dutch Central Bank confirmed the status of BNG Bank as a promotional lender. This means that bonds issued by the bank qualify as High Quality Liquid Assets Level 1 in the Liquidity Coverage Ratio under the Capital Requirements Regulation (CRR).




Please find below the statement as published by the Dutch Central Bank:

“According to Article 10(1e ii) of the Delegated Act of 10.10.2014 to supplement Regulation (EU) 575/2013, a promotional lender for the purpose of this article is defined as any credit institution whose purpose is to advance the public policy objectives of the Union or of the central or regional government or local authority in a Member State predominantly through the provision of promotional loans on a non-competitive, not for profit basis, provided that at least 90% of the loans that it grants are directly or indirectly guaranteed by the central or regional government or local authority and that any exposure to that regional government or local authority, as applicable, is treated as an exposure to the central government of the Member State in accordance with Article 115(2) of Regulation (EU) No 575/2013. Examples of promotional lenders in the Netherlands are N.V. Bank Nederlandse Gemeenten (BNG Bank) and Nederlandse Waterschapsbank N.V. (NWB Bank)”.

Trefwoorden: Tags: Bond issues

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