Capital Conservation Buffer

The capital conservation buffer exists to strengthen the capital position of credit institutions above the level of regulatory capital prescribed pursuant to the Law on Credit Institutions (OGM 72/19, 82/20, 8/21).

It is maintained in the form of Common Equity Tier 1 capital in the amount of 2.5% of its total risk exposure, as prescribed under Article 138 of this law.

It is important to point out that the transitional and final provisions of the Law on Credit Institutions (Article 386) introduce a phasing in of the rate of 2.5%, so the capital conservation buffer rate in 2022, 2023, and 2024 will be maintained at 0.625%, 1.25%, and 1.875% of the total amount of risk exposure, respectively, and the amount of 2.5% will be reached in 2025.