The systemic risk buffer aims to address systemic risks of a long-term, non-cyclical nature that are not covered by the Capital Requirements Regulation. The buffer level may vary across institutions or sets of institutions. There is no maximum limit for this buffer, but depending on its level and the impact on other Member States, authorisation from the European Commission may be required.
The Capital Requirements Directive (CRD IV) sets out “accumulation” rules for combining the systemic risk buffer with buffers for systemically important institutions.