site.btaEight Banks Identified as Other Systemically Important Institutions

The Governing Council of the Bulgarian National Bank (BNB) on Monday identified eight banks as other systemically important institutions (O-SIIs) under the criteria established in BNB Ordinance No. 8 on Banks' Capital Buffers and the common EU methodology laid down in Guidelines of the European Banking Authority (EBA).

The BNB General Council set the level of the O-SII buffer on an individual and on consolidated basis, applicable from January 1, 2023, to the total risk exposure amount, at 1.00% for UniCredit Bulbank AD, DSK Bank AD and United Bulgarian Bank AD, at 0.75% for Eurobank Bulgaria AD, First Investment Bank AD and KBC Bank Bulgaria EAD, and at 0.50% for Central Cooperative Bank AD and Bulgarian Development Bank EAD.
    
The goal of the buffer is to strengthen the capacity of O-SIIs to absorb losses and accordingly to limit the contagion risks stemming from a potential stress event in a systemically important bank to other credit institutions or the banking system as a whole. With the higher capital requirements, the resilience of the systemic institutions to adverse shocks is enhanced and the normal functioning of the banking system, even in times of significant unexpected future losses, is ensured.