ING Groep(US:ING) Zhi Tong Cai Jing·2025-11-24 11:25Core Viewpoint - ING Group has completed two significant risk transfer transactions related to €10.5 billion ($12.1 billion) in corporate loans, enhancing its capital buffer [1] Group 1: Financial Impact - The SRT transactions are expected to increase ING's CET1 ratio by 0.14 percentage points [1] - ING raised its CET1 ratio target to 13%, reducing the funds available for investor returns as the gap between the target and actual level (13.4% at the end of Q3) narrows [1] Group 2: Strategic Initiatives - The announced SRT transactions are the first of their kind within ING's wholesale banking division, aiming to reduce risk-weighted assets by €3.4 billion [1] - ING plans to expand the strategic use of SRTs to retail banking and more wholesale banking portfolios in the coming years [1] Group 3: SRT Mechanism - SRT is a tool that allows banks to sell credit-linked notes to pension funds, sovereign wealth funds, and hedge funds, providing default insurance for loans and freeing up resources originally required to meet regulatory demands [1] - Several European banks have been utilizing this risk management tool to release capital [1]