Comment on systemic risk buffer update
On 11 December, the Norwegian Ministry of Finance announced amendments to the capital requirements for Norwegian banks that will be implemented 31 December 2020. Compared with the consultation paper, the systemic risk buffer has been changed for countries outside the European Economic Area. For countries that do not have systemic risk buffer requirements, the rate is set to zero instead of previously proposed Norwegian buffer rate. Based on DNB's portfolio as at the third quarter of 2019, the effective systemic risk buffer requirement will be approximately 3.1 per cent compared with the previous estimate of 3.9 per cent.
The Ministry of Finance has stated that the purpose of the amendment is to maintain the solidity of Norwegian banks following the implementation of the EU legislation (CRR/CRD IV) on 31 December 2019. The Ministry of Finance has, in this regard, asked Finanstilsynet (the Financial Supervisory Authority of Norway) to review the connection between Pillar 1 and Pillar 2, including the Pillar 2 guidance. Based on this, DNB will for now not make any changes to the previously communicated capital target of 17.9 per cent (CET1).
For further information, please contact:
Rune Helland, head of Investor Relations, tel. (+47) 23 26 84 00 / (+47) 977 13 250
This information is subject to the disclosure requirements according to Section 5-12 of the Norwegian Securities Trading Act.