ING Direct 2015 Annual Report Download - page 242

Contents
Who we are
Report of the
Management
Board
Corporate
Governance
Consolidated
annual accounts
Parent company
annual accounts
Other
information
Additional
information
Additional Pillar III information
Additional Pillar III information
Introduction
Basis of disclosure
The information in this report relates to ING Bank N.V. and all of its subsidiaries (hereafter ING Bank) in its character as significant
subsidiary of ING Group. There are no differences between the scope of consolidation for prudential purposes compared to the
accounting scope of consolidation as reported in the annual accounts in Note 46 ‘Principal subsidiaries’.
Assurance/validity
The information in this section has not been audited by ING Group’s external auditors. However, the Pillar III disclosures are subject to
the ING Bank’s internal control assessments and validation mechanisms, to provide reasonable assurance over the information
disclosed in this report as well as with regards to compliance with laws and regulations.
The Disclosure Committee (DC), responsible for all ING Bank disclosures, considers the content and the accuracy before reporting its
conclusions to the Audit Committee (AC) which provides the final review and approval. This process ensures that both Management
Board and Supervisory Board are given sufficient opportunity to review and challenge the Bank’s financial statements and other
significant disclosures before they are made public. In addition, if material is not published in the annual report, for instance in a
stand-alone report or as a section on a website, then management (General Manager or Head of department involved) should ensure
that appropriate verification and validation of the information takes place.
Regulatory framework
The Pillar III report is prepared in accordance with the Capital Requirements Regulation (‘CRR’) and Capital Requirements Directive IV
(‘CRD IV’) as required by the supervisor authority. The purpose of this report is to meet the regulatory disclosure requirements in
accordance with Part Eight of the CRR, especially the articles 431 to 455, which came into force on 1 January 2014.
Some of the required information has already been provided elsewhere in the Annual Report, e.g. in the Risk Management section
and/or in the Capital Management paragraph. For CRR/CRD IV disclosure requirements a CRD IV reference guide to direct the readers
through the different disclosures will be published on the corporate website ing.com. http://www.ing.com/About-us/Annual-Reporting-
Suite.htm
The ING Bank’s ‘additional Pillar III information’ report contains Regulatory Capital requirements, Credit Risk, including securitisations
and Other Non-Credit Obligation Assets (ONCOA), Market Risk and Liquidity Risk disclosures. The regulatory requirements provided in
the first section of the report for credit risk, market risk and operational risk relates primarily to the first pillar, the minimum capital
requirement. The second pillar concerns Economic Capital (EC) and the underlying models used internally by banks and reviewed by
supervisors. Economic Capital, and consequently Pillar II, is disclosed extensively in the Risk Management section. Further in the report
you will find additional information on regulatory exposures and risk weighted assets which are not in the risk management section.
As such, the text of this Pillar III section should be read in conjunction with statements made in the Risk Management section and
Capital Management section of the annual accounts, where there is a comprehensive discussion of Risk Management and Capital
Management.
The Pillar III report is published on annual basis as part of the ING Bank Annual Report. However, some capital requirements as laid
down in Article 438 and information on risk exposure or other items prone to rapid change are disclosed on a quarterly basis.
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