Macroprudential measures – Estonia

In accordance with Article 133 of the CRD, the Estonian macroprudential authority decided to set a systemic risk buffer rate of 1% applied to domestic exposures of all banks having a registered office in Estonia with effect from 1 August 2016.

The Czech National Bank does not reciprocate this measure directly, but the setting of the systemic risk buffer rate in the Czech Republic contains elements of reciprocation of the above measure. The systemic risk buffer rate in the Czech Republic is at least 1% for the five systemically most important banks, whose exposures exceed 65% of the total exposure of the banking sector. This rate applies to all exposures, including cross-border exposures to counterparties established in Estonia. Thus, indirect reciprocity of the Estonian measure exists for these banks and is contained in the setting of the systemic risk buffer in the Czech Republic.

The exposures of the Czech banking sector to Estonia are just 0.00002% of the total exposure and therefore cannot be considered material. The Czech National Bank will continuously assess the exposures of domestic banks for which a systemic risk buffer rate of at least 1% has not been set and stands ready to amend its decision if necessary.

Prague, 24 August 2016