ING Direct 2004 Annual Report Download - page 107
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ING Group Annual Report 2004 105
REGULATORY REQUIREMENTS
ING Bank
Capital adequacy and the use of regulatory required capital are based on the guidelines developed by the Basel Committee on
Banking Supervision (the Basel Committee) and European Community Directives, as implemented by the Dutch Central Bank
(DNB) for supervisory purposes. The minimum Tier-1 ratio is 4% and the minimum total capital ratio (known as the ‘BIS ratio’) is
8% of all risk-weighted assets, including off-balance sheet items and market risk associated with trading portfolios.
CAPITAL POSITION OF ING BANK
2004 2003
Shareholders’ equity(1) 13,977 14,868
Third-party interests 508 553
Capital and reserves of Stichting Regio Bank 507 469
Subordinated loans qualifying as Tier-1 capital (2) 5,025 2,256
Fund for general banking risks 1,446 1,281
Dividend preference shares(3) -118
Revaluation reserve(4) -324 -235
Core capital - Tier 1 21,139 19,074
Supplementary capital Tier 2 10,471 9,743
Available Tier-3 funds 357 138
Deductions -534 -473
Qualifying capital 31,433 28,482
Risk-Weighted Assets 274,138 251,266
Tier-1 ratio 7.71% 7.59%
BIS ratio 11.47% 11.34%
(1) As at 31 December 2003, Shareholders' equity included an amount of EUR 3,002 million that qualifies as innovative Tier-1 capital (dated and undated).
EUR 2,402 million was raised via Trust Preferred Securities issued by ING Groep N.V. and EUR 600 million was raised by ING Groep N.V. as perpetual
subordinated bonds. These amounts have been repaid in 2004.
(2) Subordinated loans qualifying as Tier-1 capital have been placed by ING Groep N.V. with ING Bank N.V. In 2004, new subordinated loans have been granted
by ING Groep N.V. to ING Bank N.V. for an amount of EUR 2,883 million.
(3) Dividend declared but not yet paid is deducted as it is not part of Tier-1 capital.
(4) Revaluation reserve is deducted as it is not part of Tier-1 capital (included in Tier 2).
ING Insurance
European Union directives require insurance companies established in member states of the European Union to maintain
minimum capital positions. The capital position of ING Insurance has been measured on the basis of this EU requirement.
CAPITAL POSITION OF ING INSURANCE
Non-insurance Non-insurance
Total ING companies, Total ING companies,
Verzeke- core debt & Verzeke- core debt &
ringen other Insurance ringen other Insurance
N.V. eliminations companies N.V. eliminations companies
2004 2003
Available capital 18,272 278 18,550 15,844 2,619 18,463
Required capital 8,697 8,697 8,779 8,779
Surplus capital 9,575 9,853 7,065 9,684
Ratio of available versus required capital 210% 213% 180% 210%