Development of the solvency ratio

Situation as at 31.12.2016

  

Year

Total capital ratio

Own funds

(in million EUR)

Tier 1 capital ratio

Original own funds 
(in million EUR)

Common Equity Tier 1 capital ratio 

Common Equity Tier 1

(in million EUR)

2014

19.6%

46,296.6

18.5%

43,695.39

18.4%

43,537.26

2015

20.7%

47,600.8

20.0%

45,893.7

19.9%

45,736.2

2016

24.8%

50,120.4

24.1%

48,693.1

24.0%

48,533.8

 

 

In accordance with Article 5 of CSSF Regulation No 14-01 on the implementation of certain discretions of Regulation (EU) No 575/2013 and Article 92 of Regulation (EU) No 575/2013, the Luxembourg institutions and the branches of non-EU banks, if they are not subject to supervision by a foreign authority based on compliance with standards offering guarantees that are comparable to those in force in Luxembourg, are required to observe, since January 2014:

 

  • a Common Equity Tier 1 capital ratio of 4.5%; 
  • a Tier 1 capital ratio of 6%; and 
  • a total capital ratio of 8%.

In addition, the CSSF having anticipated the implementation of the capital conservation buffer, the aforementioned institutions are required, under Article 6 of CSSF Regulation N° 14-01 to hold, from 1 January 2014, a capital conservation buffer (made up of Common Equity Tier 1) equal to 2.5% of the total amount of their risk exposure.

 

Pursuant to Article 1 of CSSF Regulation No 16-15 on the setting of the countercyclical buffer rate, the countercyclical buffer rate applicable to the relevant exposures located in Luxembourg is maintained at 0% for the 1st quarter of 2016.