Eight Belgian banks have once again been designated as "systemically important institutions" by the National Bank of Belgium (NBB), the NBB announced on Monday.
Systemically important banks are those whose failure could significantly impact the financial system or the economy. They are required to hold additional capital reserves.
The eight systemically important institutions in Belgium are KBC, BNP Paribas Fortis, Euroclear Holding, ING Belgium, Belfius Bank, The Bank of New York Mellon, Argenta, and Crelan.
For each of these institutions, the NBB’s Board of Directors has decided to maintain the additional capital surcharges announced in 2023. These are 1.5% for KBC, BNP Paribas Fortis, Euroclear Holding, ING Belgium, and Belfius Bank, and 0.75% for The Bank of New York Mellon, Argenta, and Crelan.
"These buffers are primarily structural," the NBB explained. "Any temporary release in the context of a persistent crisis should be coordinated with the relevant national and international authorities. If additional support measures are needed, releasing these buffers would likely be one of the last macroprudential tools used."
