Capital conservation buffer

Published: 28/2/2019

The capital conservation buffer is a capital buffer of 2.5% of a credit institution'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 credit institution’s capital.

The requirement to maintain the capital conservation buffer is set out in Article 117 of Credit Institutions Act (Official Gazette 159/2013, 19/2015, 102/2015 and 15/2018).