As a result, Nykredit's capital flexibility almost matches that of a listed company. Therefore, Nykredit's CET1 capital need is lower than previously when Nykredit was mainly owned by an association of customers.
The Board of Directors has set the CET1 capital requirement at 15.5-16.5% of the risk exposure amount (REA). In addition to this, Nykredit has already reserved CET1 capital to meet the upcoming Basel requirements.
The EU is expected to adopt Basel IV in 2022, with implementation in the period 2023-2027.
Note: "Nykredit's capital flexibility need"