De Nederlandsche Bank’s annual stress test found that Dutch small and medium-sized banks remain adequately capitalized as a sector under a severe three-year economic shock. The average Common Equity Tier 1 ratio of participating less significant institutions fell from 25.6% to 21.9% but remained well above minimum requirements. The scenario assumed an economic contraction, higher inflation and unemployment, and sharp declines in housing and commercial property prices. Results varied by bank because of differences in business models, loan portfolios, economic sensitivities and starting capital positions. De Nederlandsche Bank will use the institution-specific findings to calibrate supervision, including Pillar 2 Guidance on additional capital for absorbing shocks.
2026-09-07De Nederlandsche Bank
De Nederlandsche Bank stress test finds smaller banks retain sufficient capital under severe shock
De Nederlandsche Bank’s stress test found that Dutch small and medium-sized banks remain adequately capitalized as a sector under a severe three-year downturn, despite their average Common Equity Tier 1 ratio falling from 25.6% to 21.9%. Bank-specific results will inform supervision and Pillar 2 Guidance.