Press release of Banco de Portugal on the identification of Other Systemically Important Institutions (O-SIIs) and imposition of capital buffers
Banco de Portugal has decided to impose capital buffers on credit institutions identified as O-SIIs, in the scope of its annual revision of the identification of O-SIIs and the imposition of capital buffers, pursuant to Article 138-R (2) of the Legal Framework of Credit Institutions and Financial Companies (RGICSF), in the exercise of its powers as national macro-prudential authority and having duly notified the European Central Bank in accordance with Article 5 of Council Regulation (EU) No 1024/2013, of 15 October 2013, which did not object to the present decision, and after having also consulted with the National Council of Financial Supervisors, under Article 2 (3) (c) of Decree-Law No 143/2013 of 18 October 2013.
For this purpose, as set out in legal and regulatory provisions, the Bank has released the table below with the names of the banking groups identified as O-SIIs in 2016 and the respective capital buffers as a percentage of the total risk exposure amount. These buffers shall consist of Common Equity Tier 1 on a consolidated basis and shall be met as follows: 50% and 100% in 2018 and 2019 respectively. As such, the table below shows which buffers must be met in each period. These buffers will be revised each year or in the event of a significant restructuring process, more specifically, a merger or acquisition.
O-SIIs | O-SII capital buffer as at 1 January 2018 | O-SII capital buffer as at 1 January 2019 |
|---|---|---|
Caixa Geral de Depósitos | 0.50% | 1.00% |
Banco Comercial Português | 0.375% | 0.75% |
Novo Banco | 0.25% | 0.50% |
Banco BPI | 0.25% | 0.50% |
Santander Totta - SGPS | 0.25% | 0.50% |
Caixa Económica Montepio Geral | 0.125% | 0.25% |
The identification and calibration methodologies remained unchanged from the previous exercise. The table shows that O-SII capital buffers for each banking group were stable from the last decision of Banco de Portugal, reported on 29 July 2016, except for Novo Banco. Given that this banking group’s score in the identification exercise was reduced, it must comply with a lower capital buffer, in line with the calibration methodology adopted.
