Banco de Portugal has conducted its annual reassessment of the list of institutions identified as ‘other systemically important institutions’ (O-SII) and the respective capital buffers.

This decision was made within the scope of its annual revision of the identification of 

O-SII and the imposition of capital buffers, pursuant to Article 138-R (2) of the Legal Framework of Credit Institutions and Financial Companies and in the exercise of Banco de Portugal’s powers as national macroprudential authority. For this purpose, Banco de Portugal 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 draft decision, and consulted with the National Council of Financial Supervisors, under Article 2 (3) (c) of Decree-Law No 143/2013 of 18 October 2013. 

As set out in legal and regulatory provisions, Banco de Portugal has released the table below with the names of the banking groups identified as O-SII in 2019 and the corresponding capital buffers as a percentage of the total risk exposure amount. These buffers shall consist of Common Equity Tier 1 and shall be met on a consolidated basis.

The list of banking groups identified as O-SII in 2019 coincides with the one published by Banco de Portugal in 2018, except for Novo Banco S.A. that was replaced by LSF Nani Investments S.à.r.l. following the change in the shareholder structure. In addition, Banco de Portugal revised the O-SII buffer requirement of Banco Comercial Português S.A. from 0.75% to 1.00% given the increase of its systemic importance for the Portuguese financial system. As a result, Banco de Portugal granted Banco Comercial Português S.A. an additional year to comply with the 25 basis point increase, that is the O-SII buffer should be fully met as from 1 January 2022. For the remaining banking groups, the phase-in period established in 2017 remains unchanged and the O-SII buffer shall be met as follows: 75% on 1 January 2020 and 100% on 1 January 2021.

The decision on the O-SII buffers will be revised by Banco de Portugal each year or in the event of a significant restructuring process, more specifically a merger or an acquisition.