De Volksbank participated in the 2021 SSM stress test
De Volksbank N.V. (de Volksbank) has participated in the 2021 Single Supervisory Mechanism (SSM) stress test conducted by the European Central Bank (ECB). De Volksbank takes note of the announcement made by the ECB on the stress test today, and acknowledges the outcomes of this exercise.
The stress test assessed the resilience of European banks to adverse market developments over a period of three years and did not contain a pass/fail threshold. The results of this stress test will be used by the ECB as input in the upcoming Supervisory Review and Evaluation Process (SREP).
Applying the assumptions and methodological restrictions of the stress test’s adverse scenario, de Volksbank’s Common Equity Tier 1 (CET1) capital ratio at year-end 2023 would end up in the highest range of ≥ 14%, as used by the ECB, and would remain amply above our SREP CET1 capital ratio requirement of 9.41%. At 31 December 2020, our CET1 capital ratio stood at 31.2%.
More information on the outcome of the 2021 SSM stress test is provided by the ECB at bankingsupervision.europa.eu.
