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Capital conservation buffer

The capital conservation buffer is a capital buffer of 2.5% of a bank’s total exposures that needs to be met with an additional amount of Common Equity Tier 1 capital. The buffer sits on top of the 4.5% minimum requirement for Common Equity Tier 1 capital. Its objective is to conserve a bank’s capital. When a bank breaches the buffer, automatic safeguards apply to limit the amount of dividend and bonus payments it can make.

Notifications

27/06/2017
Notification by Central Bank of Cyprus regarding the exemption of small and medium-sized investment firms to maintain a countercyclical capital buffer
04/07/2016
The ESRB publishes an updated overview of measures of macroprudential interest.
08/06/2016
Notification by Banco de Portugal on the capital conservation buffer
18/01/2016
Notification by Bank of England on the recognition of shorter transitional periods for the capital conservation buffer and the countercyclical capital buffer.
30/12/2015
Notification by Komitet Stabilności Finansowej (Financial Stability Committee of Poland) on the capital conservation buffer and the countercyclical capital buffer.
29/12/2015
Notification by Banca Naţională a României (National Bank of Romania) on the implementation of the capital conservation buffer.
28/12/2015
Notification by the Malta Financial Services Authority on the capital conservation buffer and the countercyclical capital buffer.
02/12/2015
Notification by Commission de Surveillance du Secteur Financier of Luxembourg on the countercyclical capital buffer and the capital conservation buffer.
LetterRegulation CSSF 15-04Regulation CSSF 15-05 SME
14/09/2015
Notification by Banco de Portugal of the intended implementation of a 2.5% capital conservation buffer (applicable from 1 January 2016)
17/07/2015
Notification by the Croatian Financial Services Supervisory Agency on the exemption of small and medium-sized investment firms from the requirements to maintain a capital conservation buffer
13/05/2015
Notification by the Banca d’Italia (Bank of Italy) on the early introduction of the capital conservation buffer and the exemption of small and medium-sized investment firms from the application of the capital conservation buffer
29/04/2015
Notification by Národná banka Slovenska (National Bank of Slovakia) on the exemption of small and medium-sized investment firms from the requirement to maintain a capital conservation buffer and an institution-specific countercyclical capital buffer, and of the recognition of shorter transitional periods for the countercyclical capital buffer imposed by other Member States
SK Notification according to Art129CRDSK Notification according to Art160CRDSK Notification according to Art130CRD
23/04/2015
Notification by Lietuvos bankas (Bank of Lithuania) of the introduction of the capital conservation buffer and the countercyclical capital buffer without any transitional period
20/03/2015
Notifications by the Ministry of Business and Growth of Denmark related to the exemption of small and medium-sized investment firms from the requirements to maintain a capital conservation buffer and a countercyclical capital buffer
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08/12/2014
Notifications by the Financial Conduct Authority of the United Kingdom on the exemption of small and medium-sized investment firms from the requirements to maintain a capital conservation buffer and a countercyclical capital buffer
Capital conservation buffer exemption notificationCountercyclical capital buffer exemption notification
11/11/2014
Notification by Bulgarian National Bank on the introduction of the capital conservation buffer and the systemic risk buffer and related annex
Annex
07/11/2014
Notification by Národná Banka Slovenska (National Bank of Slovakia) on the early introduction of the capital conservation buffer and the countercyclical capital buffer, in addition to the setting of the countercyclical capital buffer rate for Slovakia at 0%
06/11/2014
Notifications by Finansinspektionen of Sweden on a) the introduction of the capital conservation buffer and the countercyclical capital buffer with a shorter transitional period; b) the exemption of small and medium-sized investment firms from the requirement to maintain an institution-specific countercyclical capital buffer; and c) the intended use of the systemic risk buffer
Article 160.6Article 130Article 133.11
31/07/2014
Notification by Česká národní banka (Czech National Bank) of the introduction of the capital conservation buffer and the countercyclical capital buffer without any transitional period
15/07/2014
Notification by Hrvatska narodna banka (Croatian National Bank) of the use of shorter transitional periods for the capital conservation buffer and the countercyclical capital buffer
25/06/2014
Notification by the Financial and Capital Market Commission of Latvia of the introduction of the capital conservation buffer from 28 May 2014, without any transitional period