Press release of the Banco de Portugal on the imposition of capital buffers on credit institutions identified as “Other Systemically Important Institutions”
The Banco de Portugal, in the exercise of its powers as the national macroprudential authority, has decided to maintain the list of banking groups identified as O SII and the corresponding capital buffer requirements as a percentage of total risk exposure amount, as set on 22 October 2019 and the postponement for one year of the phase in period of this buffer, as decided on 7 April 2020.
Therefore, as provided for in the legal and regulatory provisions, this information is disclosed in the table below, with effect from 1 January of each of the years indicated. This buffer should consist of Common Equity Tier 1 on a consolidated basis.
O-SIIs | O-SII Capital buffer as of 1 January 2021 | O-SII Capital buffer as of 1 January 2022 | O-SII Capital buffer as of 1 January 2023 |
|---|---|---|---|
Banco Comercial Português, S.A. | 0.563% | 0.750% | 1.000% |
Caixa Geral de Depósitos, S.A. | 0.750% | 1.000% | 1.000% |
Santander Totta, SGPS, S.A. | 0.375% | 0.500% | 0.500% |
LSF Nani Investments S.à.r.l. | 0.375% | 0.500% | 0.500% |
Banco BPI, S.A. | 0.375% | 0.500% | 0.500% |
Caixa Económica Montepio Geral, Caixa Económica Bancária, S.A. | 0.188% | 0.250% | 0.250% |
The decision was made by deliberation of the Board of Directors on 27 October 2020, having notified the European Central Bank, which did not object to the Banco de Portugal’s proposal, and following consultation of the National Council of Financial Supervisors.
The decision on the O SII buffer is reviewed at least annually. The Banco de Portugal will continue to monitor any developments in the Portuguese banking system and, if appropriate, may review the phase in period and/or the O SII buffer rate at any time, namely to prevent the banking system from amplifying the shock triggered by the COVID 19 pandemic.
The decision now taken does not compromise the ability of the credit institutions concerned to finance the economy nor their ability to absorb losses arising from the pandemic crisis. In this regard, the competent authorities (for significant institutions, the European Central Bank and, for less significant institutions, the Banco de Portugal) have allowed these institutions to operate temporarily below Pillar 2 Guidance and the combined buffer requirement (including the O SII buffer), as well as with liquidity levels below the liquidity coverage requirement (“LCR”). The European Central Bank and the Banco de Portugal have also disclosed that they will not require institutions to start replenishing the combined buffer requirement and the Pillar 2 Guidance until at least the end of 2022 and the LCR requirement until at least the end of 2021.
