ING Direct 2011 Annual Report Download - page 286

Capital management continued
ING GROUP
The debt/equity ratio of ING Group as at year-end 2011 was 12.71% (2010: 13.44%).
ING Group reports to the Dutch Central Bank as required under the Dutch implementation of the financial conglomerates directive (FICO).
The directive mainly covers risk concentrations in the group, intra-group transactions and an assessment of the capital adequacy of the Group.
In the following table, we show the Group’s FICO ratio on the following basis:
• Insurance required capital from applying European Solvency I rules to all ING Insurance entities globally (regardless of local
capitalrequirements);
• Bank required capital based on applying Basel II with the Basel I floor (80% of Basel I Risk Weighted Assets);
• Group FICO capital using an approach similar to that used for Bank BIS capital and Insurance IGD capital whereby Group
leverageisdeducted.
Regulatory capital adequacy ING Group
2011 2010
BIS capital 47,123 49,145
IGD capital 21,406 20,336
Group leverage (core debt) –7,917 –8,462
Regulatory capital 60,612 61,019
Required capital banking operations 31,107 29,860
Required capital insurance operations 9,515 8,826
Total required capital 40,622 38,686
FICO ratio 149% 158%
Capital adequacy and ratios
Quantitative disclosures on capital measures and ratios
Group Bank Insurance
2011 2010 2011 2010 2011 2010
Tier 1 ratio (Bank)
Year-end actual Tier 1 ratio 11.69% 12.25%
Regulatory minimum Tier 1 ratio 4.00% 4.00%
Target minimum Tier 1 ratio 10.00% 10.00%
BIS ratio (Bank)
Year-end actual BIS ratio 14.26% 15.30%
Regulatory minimum BIS ratio 8.00% 8.00%
Target minimum BIS ratio 10.00% 10.00%
Insurance Groups Directive
Year-end actual Capital coverage ratio 225% 230%
Required capital 100% 100%
Target ratio 150% 150%
Debt/Equity ratio (Group)
Debt/Equity ratio 12.71% 13.44%
Target maximum Debt/Equity ratio 15.00% 15.00%
284 ING Group Annual Report 2011