Fitch warns of darker outlook for Dutch banks amid early Basel IV phase-in

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By Tyler Davies
28 Oct 2019

Fitch is forecasting a negative outlook for the issuer ratings of some of the largest lenders in the Netherlands, warning that the early introduction of a risk-weight floor for mortgage assets could weigh on the country’s banking sector through additional capital demands.

The rating agency has moved to a negative outlook on the issuer default ratings of both ABN Amro and Rabobank.

In explaining the moves, Fitch’s analysts cited a “likely rise in capital requirements” for the Dutch banking sector amid a slew of recent changes in regulation and oversight.

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