National Bank became the latest Canadian financial institution to lay out the hit it will take from the credit crunch when it said Monday it will take a $575 million charge.

The bank said the charge, which it will take in the fourth quarter, will amount to $365 million after tax as the bank revalues its asset-backed commercial paper (ABCP).

During the fourth quarter, National said it bought $2.1 million worth of ABCP, primarily from its own sponsored mutual funds and pooled funds. The bank also bought ABCP from its retail clients.

National already had about $150 million in ABCP on its own balance sheet prior to the purchase.

The bank said it “expects its Tier 1 capital ratio to be above its 8.5% target as at October 31, 2007.”

The bank will release its fourth-quarter and year-end results on November 29.