SNS Bank participated in the SSM SREP stress test
SNS Bank NV (SNS Bank) participated in the SSM (Single Supervisory Mechanism) SREP (Supervisory Review and Evaluation Process) stress test exercise conducted by the ECB. This stress test complements the EU-wide stress test exercise conducted by the EBA (EBA stress test) and addressed banking groups other than those 51 institutions taking part in the EBA stress test.
The SSM SREP stress test was performed at the highest level of consolidation (SNS Holding BV) and was based on the same methodology as that of the EBA stress test. It did not contain a pass/fail threshold. The stress test assesses the resilience of European banks to extreme but plausible adverse market developments over a period of three years.
Contrary to the EBA stress test results, the results of the SSM SREP stress test were not published on 29 July. The stress test results will be used as input in the regular SREP process, to be finalised by end 2016.
Under the assumptions and methodological restrictions of the stress test’s adverse scenario, the Common Equity Tier 1 (CET1) ratio of SNS Bank would remain above our internal minimum target of 14%. At year-end 2015, the CET1 ratio of SNS Bank stood at 25.3%.
Publication of this guidance does not imply ECB Banking Supervision endorsement. Furthermore, it is not possible to infer from this guidance any information regarding ECB top-down projections or issues discussed in the quality assurance process.