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

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582