ING Direct 2002 Annual Report Download - page 76

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Additional information
CAPITAL BASE
BREAKDOWN CAPITAL BASE
in millions of euros
GROUP INSURANCE BANKING GROUP INSURANCE BANKING
2002 2001
Shareholders’ equity 18,254 21,514
Preference shares of group companies 2,146 2,542
Subordinated loans 2,412 600
Capital base ING Group 22,812 24,656
Core debt (debt raised to finance subsidiaries) 5,681 6,202
28,493 11,279 17,214 30,858 15,396 15,462
Third party interests 1,163 744 975 492
Subordinated loans ING Verzekeringen N.V. 2,250 1,250
Equity components not included in Tier 1 (1) -325 -592
ING Group shares held and consolidation
adjustments 25 447 54 1,721
Capital base:
— ING Verzekeringen N.V. 14,717 17,675
— ING Bank N.V. (Tier-1 qualifying capital) 18,080 17,083
(1) Includes revaluation reserve and proposed profit appropriation.
CAPITAL POSITION OF THE BANKING OPERATIONS
in millions of euros
2002 2001
Core capital (Tier 1) 18,080 17,083
Supplementary capital (Tier 2) 9,116 8,588
Available Tier-3 funds 257 290
Deductible -302 -250
Qualifying capital 27,151 25,711
Required capital 19,783 19,454
Tier-1 ratio 7.31% 7.03%
BIS ratio 10.98% 10.57%
Annual Report 2002 · ING Group 73
REGULATORY REQUIREMENTS
BANKING OPERATIONS
The required capital for the banking operations in accordance with the BIS requirements amounts to
8% of all risk-weighted assets, off-balance sheet items and market risk associated with trading
portfolios (known as the ‘BIS ratio’).
Watson Wyatt has also performed limited high level checks on the results of the calculations and has
discovered no material issues. Watson Wyatt has not, however, performed detailed checks on the
models and processes used.