Macroprudential policy and financial stability glossary
- O-SII
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other systemically important institution
- O-SII buffer
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See other systemically important institutions (O-SII) buffer
- OJ
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Official Journal of the European Union
- other systemically important institutions (O-SII) buffer
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A capital buffer that aims to reduce the moral hazard created by implicit support and guarantee of bailout using taxpayers’ money that such institutions enjoy due to their size, cross-border activities and interconnectedness. It has been implemented in Europe via Article 131 CRD IV, amounts to 0-2% of total risk exposure amount to be met with CET1 capital, and can be applied to domestically important institutions and to institutions important at EU level.