Rabobank : Stable credit opinion unchanged; buy AT1 recommendation maintained

The European Commission proposals on the transposition of the ‘Basel IV’ rules into European law will delay the implementation and likely dilute its expected effects. However, for Dutch banks, the introduction of a risk weighting floor on domestic mortgages from 2022 will frontload part of the ultimate impact of ‘Basel IV’. Rabobank had prepared itself to the envisaged impact which the bank estimated at a c.15% increase in RWA (fully loaded) corresponding to a negative 230bp impa...