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Other systemically important institutions capital buffer

The capital buffer for other systemically important institutions (O-SIIs) is one of the instruments that the Banco de Portugal can use to pursue an intermediate goal of macroprudential policy, namely to mitigate the build-up of systemic risk arising from misaligned incentives and moral hazard.

Under section IV of title VII – A of the Legal Framework of Credit Institutions and Financial Companies, the designated authority may impose higher capital requirements on O-SIIs, between 0% and 3% of the total risk exposure amount, to offset the higher risk that these institutions pose to the financial system due to their size, their importance for the economy of the Member State in question or the European Union, their complexity or degree of interconnectedness with other financial sector institutions and, in the event of insolvency, the potential contagion of these institutions to the rest of the non-financial and financial sectors.

The O-SII capital buffer must be made up of Common Equity Tier 1 and be applied on a consolidated, sub-consolidated or individual basis. It is revised annually or if a significant restructuring process occurs, such as a merger or acquisition.

In Portugal, since no global systemically important institution (G-SII) was identified, the G-SII capital buffer does not apply.

The information that must be disclosed by the Banco de Portugal according to Notice of the Banco de Portugal No 4/2015 is as follows:

Tentative date for next disclosure: 30 November 2023

Any further information can be obtained through email: