Adequately capitalized. Conservative liquidity management. Good management capabilities and clear strategic focus. Moderate scale of franchise. Heavy reliance on wholesale funding. Some sectoral concentration in its corporate portfolio. Track record of volatile profitability, despite improving performance. The ratings on NIBC reflect its expertise in its niche corporate-banking franchise and our view of its adequate capitalization and improving performance, despite a track record of volatile profitability. The bank's heavy reliance on wholesale funding, which we view as a weakness, is somewhat mitigated by its conservative liquidity management and growing--albeit mostly internet-based--retail deposits. NIBC is a Netherlands-based corporate and merchant banking specialist, focused on mid-cap corporates in its core Dutch and German markets, and international lending to specific sectors. NIBC also originates
