Featured Product

    ESRB Publishes Member Notifications on O-SII and Systemic Risk Buffers

    November 20, 2019

    BNB notified EBA, ECB, and ESRB about its decision on the identification of other systemically important institutions (O-SIIs), the activation of the O-SII buffers, and the level of systemic risk buffers. Additionally, Polish Financial Supervision Authority (Komisja Nadzoru Finansowego or KNF) notified EBA, ECB, and ESRB about its decision on the identification of other systemically important institutions (O-SII) and the activation of O-SII buffers.

    BNB announced the list of identified O-SII institutions, their respective overall scores, the respective buffer rates, and the timeline of the phase-in of the buffer rates. The O-SII institutions include DSK Bank EAD, UniCredit Bulbank AD, First Investment Bank AD, United Bulgarian Bank AD, Eurobank Bulgaria AD, Raiffeisenbank (Bulgaria) EAD, Central Cooperative Bank AD, and Bulgarian Development Bank AD. The phase-in period for the O-SII buffer rates is from 2017 to 2020. The list of O-SIIs was identified based on the quantitative approach in accordance with the EBA guidelines. Changes in the buffer level of certain institutions are due to changes in the overall score of these institutions in 2019, from 2018. As an integral part of the combined buffer requirements, the O-SII buffers will further increase capacity of the systemically important institutions to absorb losses. The O-SII buffer rates are proportional to the higher risk that these institutions pose to the financial system due to their size, complexity, and importance for the economy.

    Additionally, BNB notified that it introduced the systemic risk buffer at a rate of 3% for risk exposures located in Bulgaria in 2014. In the 2019 review of the systemic risk buffer, BNB confirmed the current level of the buffer. The buffer is applicable to all banks in the country on both individual and consolidated levels. This means that banks identified as O-SIIs shall comply with the sum of the two buffer requirements. SRB requirement will be reviewed every two years. Over the years, it has been assessed that the systemic risk buffer does not represent additional regulatory burden for banks. KNF identified O-SIIs and set the O-SII buffer for these institutions in October 2016, with the activation of the measures from December 31, 2016. The measure has now been reviewed and will continue to apply until next years’ annual review. 

     

    Related Links

    Keywords: Europe, EU, Bulgaria, Poland, Banking, Systemic Risk Buffer, Macro-Prudential Measures, Systemic Risk, Proportionality, BNB, EC, EBA, ECB, ESRB

    Featured Experts
    Related Articles
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    EC to Defer Application of SFDR Standards Till July 2022

    The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.

    July 23, 2021 WebPage Regulatory News
    News

    EIOPA Consults on Reporting and Disclosures Under Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.

    July 23, 2021 WebPage Regulatory News
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7295