Systemic risk buffer
The aim of the systemic risk buffer is to avoid or minimise systemic risks that could have a serious negative impact on the financial system and the Estonian economy. The buffer requirement helps to ensure that banks have sufficient capital to cover systemic risks.
Eesti Pank can set the systemic risk buffer requirement for all the risk exposures of banks, for sectoral risk exposures, or for subsets of them. Eesti Pank follows the guidelines of the European Banking Authority (EBA) in defining sectoral exposures. Eesti Pank can also set a systemic risk buffer requirement for risk exposures located in another member state of the European Union to reciprocate the systemic risk buffer requirement set by that state.
Eesti Pank can apply the systemic risk buffer requirement to all banks, some of them, or only one bank.
|Total risk exposure||2%||1.08.2014 – 31.07.2016||All credit institutions|
|Risk exposures located in Estonia||1%||1.08.2016 – 30.04.2020||All credit institutions|
|0%||1.05.2020 – 05.12.2021||All credit institutions|
Decrees of the Governor of Eesti Pank
- Decree of the Governor of Eesti Pank No. 9 of 02 June 2021 “Procedure for calculating the systemic risk buffer”.
- Decree of the Governor of Eesti Pank No. 10 of 02 June 2021 “Procedure for recognising the systemic risk buffer”.
 Sectoral risk exposures:
- all retail exposures to natural persons secured by residential property
- all exposures to legal persons secured by mortgages on commercial immovable property
- all exposures to natural persons except those under point 1
- all exposures to legal persons except those under point 2
- Eesti Pank is cutting the capital requirements for the banks by 110 million euros (25.03.2020)
- Assessment of the need to maintain the systemic risk buffer requirement (May 2018)
- Systemic risk buffer and other systemically important institutions buffer (April 2016)
- Analysis of the need for a systemic risk buffer and its impact (May 2014)