ING Direct 2015 Annual Report Download - page 253

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 sovereigns portfolio increased by EUR 14.7 billion in READ and EUR 0.4 billion RWA. A large part of the READ increase was a result
of increased regulatory deposits at DNB, which carries a 0% risk weight therefore not impacting the RWA. Increasing customer
deposits in Japanese Yens and consequently higher placements with the Bank of Japan are driving the growth of Sovereign exposures
in Asia. This, combined with the deteriorated country rating for Japan, was an important driver behind the RWA increase. The RWA
increase in Other Europe was driven by increased regulatory deposits to the Turkish Central Bank, which carries a relatively high risk
weight. In contrast to previous years, the Bond Investments decreased during the year due to the sale of bonds, especially seen in
Germany. The deterioration visible in the PD band 20 to 50% is related to the downgrade of Ukraine. Given that a major purpose of
sovereign credit exposure is to support high quality liquid assets, it is consistent that most exposures are in the best quality risk bands.
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