Key information
- The National Bank of Belgium (BNB) forecasts a loss of 3.7 billion euros for the year 2024.
- The forecast loss is mainly due to monetary tightening and interest rate hikes by the ECB in 2022 and 2023.
- The BNB expects its safety net to be exhausted by the estimated loss, but stability and operational continuity are not threatened.
The National Bank of Belgium (BNB) forecasts a loss of 3.7 billion euros for the year 2024. This information was published on Thursday, with official financial results expected at the end of March. The BNB arrived at this estimate after receiving preliminary figures from the European Central Bank (ECB) regarding the Eurosystem’s revenue sharing and monetary allocation for 2024. These calculations will be refined and verified in the coming weeks.
Reasons behind the expected loss
The BNB clarifies that this projected loss aligns with previously communicated long-term forecasts. It is mainly attributed to the continued negative impact of monetary tightening, in particular the substantial interest rate increases implemented by the ECB in both 2022 and 2023. At the start of 2024, the net The bank’s security amounted to 3.1 billion euros. This reserve will be exhausted by the estimated loss for 2024, with any excess loss carried forward.
Stability and operational continuity
The BNB emphasizes that this situation does not jeopardize its stability or operational continuity. A central bank can, at least in the medium term, continue to fulfill its essential functions even with a negative capital position. Interestingly, BNB recorded a loss of €3.37 billion for 2023.
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