The Bulgarian National Bank set more risk buffers of between 0.125% and 0.50% of total risk exposure for 11 lenders in the country, which are considered as "other systemically important institutions," or O-SIIs, effective Jan. 1, 2018.
UniCredit Bulbank AD and First Investment Bank AD need a 0.5% additional buffer starting 2018, which will increase to 0.75% in 2019 and to 1% in 2020.
Seven other banks — DSK Bank, Societe Generale Expressbank AD, Eurobank Bulgaria AD, Raiffeisenbank (Bulgaria) EAD, United Bulgarian Bank AD, Central Cooperative Bank AD and CIBANK EAD — need additional buffers of 0.25% in 2018, 0.50% in 2019 and 0.75% in 2020.
Meanwhile, a 0.125% buffer is needed for Piraeus Bank Bulgaria AD and Bulgarian Development Bank AD, which will rise to 0.25% in 2019 and to 0.50% in 2020.
The central bank also set the rate of the systemic risk buffer for all banks at 3%. It implemented a 2.5% capital conservation buffer in 2014 and maintains a zero percent counter-cyclical capital buffer, Reuters reported Dec. 1, adding that as of September-end, the average common equity Tier 1 ratio of Bulgarian banks was 20.5%.
