22.09.2020

The countercyclical capital buffer is intended to protect the banking sector against losses that could be caused by cyclical systemic risks increasing in the economy. Countercyclical capital buffers require banks to hold capital at times when credit is growing rapidly so that the buffer can be... more

30.07.2020

The systemic risk buffer is intended to increase the resilience of the financial sector to non-cyclical risks that could have a serious negative impact on the national financial system or the economy.

The main reason for applying the systemic risk buffer requirement lies in the small... more

28.04.2020

The macroprudential tools available to Eesti Pank can be divided into three groups:

1) Moral suasion measures, with which Eesti Pank can draw the attention of market participants to vulnerabilities in the financial system and so influence their decisions indirectly. This can include... more

25.03.2020

Eesti Pank is reducing the systemic risk buffer for the commercial banks from 1% to 0%. This will free up 110 million euros for the banks, which they can use to cover possible loan losses or to make new loans.

“We have required the banks to build up buffers during the good times, and now... more

18.10.2019

The aim of the other systemically important institutions buffer is to increase the resilience of systemically important market participants. Their importance may stem from their size, their complexity or their interdependence with other participants in the financial system.

In 2018 Eesti... more

11.09.2019

Banks that have adopted the Internal Ratings Based (IRB) approach must use a risk weight of at least 15% for retail exposures secured by real estate to residents of Estonia when calculating risk-weighted assets. The floor is set for the average of the portfolio of retail exposures secured by... more

03.12.2018

Macroprudential policy covers systemic risk analysis and assessment, and the deployment of measures to ensure financial stability. The macroprudential authority in Estonia is Eesti Pank. Under the Eesti Pank Act, the duties of Eesti Pank include supporting the stability of the financial system... more

02.11.2017
  • Overall the risks to financial stability are small. The risks are mitigated by the rising incomes that follow from economic growth, large financial buffers and the strong capitalisation of the banks
  • The biggest danger to Estonian financial stability comes from the risks in the... more
25.08.2016
  • The newly created bank will increase the volume of assets in the Estonian banking sector by around 40%
  • The new bank will be the second biggest in the Baltic states
  • The new bank could strengthen competition in the market for banking services for private clients in Estonia... more
31.05.2016
  • From August the commercial banks will have to hold systemic risk buffers of 1% rather than 2%
  • Eesti Pank will require Swedbank and SEB to hold a further buffer of 2% because they are systemically important banks

Changes to the capital buffer requirements for the... more

Subscribe to Keyword: macroprudential policy
Subscribe to Keyword: macroprudential policy