CNB adjusts systemic risk buffer rates for domestic systemically important banks

The CNB has reviewed the systemic importance of domestic banks and has set the following systemic risk buffer rates for the five systemically most important banks with effect from 1 January 2017: 3% for Česká spořitelna, ČSOB and Komerční banka, 2% for Unicredit Bank and 1% for Raiffeisenbank.

The CNB has set systemic risk buffer rates for the systemically most important banks since 2014. On the basis of their systemic importance at the end of 2015 and an assessment of additional circumstances, the CNB has concluded that the rate for Česká spořitelna and ČSOB will remain unchanged at 3%, the rate for Komerční banka will increase from 2.5% to 3% and the rate for Unicredit Bank will increase from 1% to 2%. A requirement to maintain a systemic risk buffer of 1% will be introduced for Raiffeisenbank. The banks are required to maintain their systemic risk buffers at the new levels as from 1 January 2017 on both an individual and consolidated basis. The rates are expressed as a percentage of the bank’s overall risk exposure and the buffer must consist of the bank’s Common Equity Tier 1 (CET1) capital.

The methodology for specifying the degree of systemic importance is based on a number of indicators describing four key parameters of the bank: size, complexity, substitutability and interconnectedness. The CNB first set rates of 3% for Česká spořitelna and ČSOB, 2.5% for Komerční banka and 1% for UniCredit Bank with effect from 1 November 2014. In accordance with Article 12r(2) of the Act on Banks, the CNB must review the reasons for setting the systemic risk buffer rate at least once every two years. In line with this provision, the CNB re-assessed the degree of systemic importance of domestic banks on the basis of end-2015 data and using the same methodology as in the previous assessment in 2014.

Marek Zeman
Director, CNB Communications Division