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 total risk exposure, as prescribed under Article 138 of the aforesaid law.
The transitional and final provisions of the Law on Credit Institutions (Article 386) introduced a phasing in of the rate of 2.5%, so the capital conservation buffer rates in 2022, 2023, and 2024 were maintained at 0.625%, 1.25%, and 1.875% of the total amount of risk exposure, respectively, reaching the amount of 2.5% in 2025.