15 October 2021
Annual statistics

Development of the solvency ratio

Situation as at 31 December 2020

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 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
2017 25.9% 51,542.9 25.1% 49,990.5 24.5% 48,831.9
2018 25.2% 48,342.63 24.4% 46,863.92 23.8% 45,705.4
2019 22.7% 50,070.14 22.2% 48,977.12 21.7% 47,781.6
2020 24.5% 55,397.37 22.6% 50,986.3 21.9% 49,503.28

 

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.