KBC capital requirements remain unchanged following the European Central Bank’s 2026 supervisory review, the banking group said on October 27. Its second-quarter capital ratio stood above the resulting minimum requirement.
KBC capital requirements after the review
The ECB maintained KBC’s Pillar 2 Requirement at 1.95% of risk-weighted assets and its Pillar 2 Guidance at 1.00%. The decision leaves the group’s fully loaded overall common equity tier 1, or CET1, requirement at 10.94% under the Danish Compromise, unchanged from the second quarter of 2026.
At the end of that quarter, KBC’s unfloored, fully loaded Basel 4 CET1 ratio was 14.4%, above the requirement.
What makes up the CET1 requirement
The 10.94% requirement comprises a 4.50% Pillar 1 requirement, a 1.10% CET1 component of the Pillar 2 Requirement, a 2.50% capital conservation buffer, a 1.50% buffer for other systemically important institutions and 1.34% for announced countercyclical capital buffer changes.
The 1.10% CET1 component reflects the split of the overall Pillar 2 Requirement under Article 104a of CRD V.
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