The European Central Bank Banking Supervision has published the results of asset quality reviews of KfW Beteiligungsholding GmbH (KfW IPEX) and Promontoria 19 Coöperatie U.A. (Promontoria), after both banks were classified as significant because their assets exceeded EUR 30 billion. The reviews found no capital shortfalls, as the banks’ Common Equity Tier 1 ratios remained above their capital requirements after the prudential adjustments. The exercises focused on credit risk. For KfW IPEX, the review covered the non-retail credit portfolio, while for Promontoria it covered residential real estate, other retail and non-retail portfolios. In both cases, the selected portfolios represented more than 80% of credit risk-weighted assets. The review reduced KfW IPEX’s CET1 ratio by 87 basis points to 14.33% from 15.20%, and reduced Promontoria’s CET1 ratio by 400 basis points to 12.61% from 16.61%. The results will feed into ongoing supervision and the Supervisory Review and Evaluation Process, and will lead to supervisory measures to address identified weaknesses. The ECB expects both banks to follow up on the outcome of the reviews.
European Central Bank - Banking Supervision2026-06-25
European Central Bank Banking Supervision concludes asset quality reviews of KfW IPEX and Promontoria with no capital shortfalls
European Central Bank Banking Supervision published asset quality review results for KfW IPEX and Promontoria after both banks became significant institutions. The reviews focused on credit risk and reduced CET1 ratios by 87 basis points and 400 basis points respectively, but neither bank fell below its capital requirements. The findings will feed into ongoing supervision and follow-up supervisory measures.