BNG Bank comfortably passes Comprehensive Assessment

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BNG Bank comfortably passed the EU-wide Comprehensive Assessment as organised by European supervisors. The Asset Quality Review (AQR) led to a limited number of adjustments. Following the AQR and the stress test, the base scenario resulted for BNG Bank in an estimated consolidated CET 1 ratio of 21.3%, more than 2.5 times the minimum threshold of 8%. Under the adverse scenario the CET 1 ratio would be 17.3%, more than three times the minimum threshold of 5.5%.

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The European Central Bank notes that a stress testing exercise does not provide forecasts of expected outcomes since the adverse scenarios are designed as ‘what-if’ scenarios including plausible but extreme assumptions, which are therefore not very likely to materialise.

BNG Bank notes that the outcome of the Comprehensive Assessment is influenced by, amongst others, the standardised approach as used by European regulators. Specific characteristics of a public sector bank like BNG Bank and the markets where it operates are not always properly reflected in this approach, notably with regards to the stress test.

BNG Bank is a bank of and for Dutch local authorities and public sector institutions. Its specialized financial services help to minimize the cost to the public of social provisions. BNG Bank is ranked in the top 5 of the World's 50 Safest Banks List, published by Global Finance in September 2014. The public long-term debt issued by BNG Bank is rated AA+ by Standard & Poor's, Aaa by Moody's and AAA by Fitch. As of 4 November 2014 BNG Bank, as one of the larger European banks, is directly supervised by the European Central Bank.

Please find the Comprehensive Assessment Outcome on the website of the European Central Bank.
Please find the results of the Stress Test on the website of the European Banking Authority.

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