ING Direct 2015 Annual Report Download - page 244

Contents
Report of the
Executive Board
Corporate
Governance
Consolidated
annual accounts
Parent company
annual accounts
Other
information
Additional
information
Additional Pillar III information - continued
The increase in CRR/CRDIV required regulatory capital was mainly caused by increased impact of external loss data and a model
recalibration to improve the tail accuracy in Operational risk, and an increase in Credit risk where volume growth and equity
investment were partially offset by reduction in CVA. ONCOA represents assets of non-credit obligation character that are not included
in the SA or AIRB calculations. At 31 December 2015, the capital requirement for ONCOA was EUR 1,677 million. The CRR/CRDIV requires
Banks to hold own funds of at least 80% of the old Basel I requirement, which was 8% of the RWAs as calculated using the Basel I
methodology. This requirement remains at least until the end of 2017.
2015
CRR/CRD IV
phased-in
CRR/CRD IV
fully loaded
Common Equity Tier 1 capital
Opening amount
33,256
33,668
Profit included in CET1 capital
2,459
2,459
Adjustment prudential filters own credit risk
–135
–129
Change in goodwill and intangibles
–296
88
Change in revaluation reserves
1,689
317
Change in third party interest
40
40
Change in deductions significant investments in Financial Institutions
17
41
Other
–277
350
Closing amount
36,753
36,834
Additional Tier 1 capital
Opening amount
3,844
5,727
Change in AT 1 instruments
1,521
1,521
CRR/CRD IV phased-in adjustments (excl. significant investments in FIs)
569
Change in deductions significant investments in Financial Institutions
34
Closing amount
5,968
7,249
Tier 2 capital
Opening amount
8,915
9,474
Change in T 2 instruments
–801
–801
CRR/CRD IV phased-in adjustments (excl. significant investments in FIs)
184
Change in deductions significant investments in Financial Institutions
34
Change minority interest
–1
–1
Closing amount
8,331
8,671
Total Regulatory Capital
51,052
52,754
Capital adequacy assessment
As at 1 January 2014, the CRR/CRD IV capital rules entered into force. According to CRR/CRD IV capital adequacy rules, the minimum
Common Equity Tier 1 ratio has to be 4.5%, the minimum Tier 1 requirement 6% and the total capital ratio (known as the BIS ratio) 8%
of all risk-weighted assets.
The capital position table reflects own funds according to the CRR/CRD IV rules. As CRD IV will be phased in gradually until 2019, the
table shows the CRD IV positions according to the 2019 end-state rules and the 2015 rules. This makes clear which items phase in
directly, which phase in gradually.
ING Bank’s capital consists of Tier 1 capital and Tier 2 capital net after deductions. Tier 1 capital consists of both Common Equity Tier 1
capital and other Tier 1 capital, also referred to as hybrid capital. Tier 2 capital consists mostly of subordinated loans.
ING Bank continues to maintain strong and high quality capital levels with a Common Equity Tier 1 ratio of 11.55% at end of 2015. This
percentage is calculated on the basis of immediate and full implementation and disregarding the possible impact of future
management actions.
ING Bank Regulatory Capital flow statement
ING Bank Annual Report 2015 242