The NBS Head Office Building was built from 1888 – 1890, on the basis of blueprints designed by Konstantin Jovanovic (Vienna 1849 – Zurich 1923), son to distinguished artist Anastas Jovanovic...
One of the most important innovations introduced by Basel III standards are capital buffers. Capital buffers are additional Common Equity Tier 1 capital that banks are obliged to maintain above the prescribed regulatory minimum. Their introduction has several advantages: the buffers increase the resilience of banks to losses, reduce excessive or underestimated exposures and restrict the distribution of capital. These macroprudential instruments should limit systemic risks in the financial system, which can be cyclical (capital conservation buffer and countercyclical capital buffer) or structural (capital buffer for a systemically important bank and systemic risk buffer).
| Capital buffers in Serbia | Current rate | Notes |
|---|---|---|
| Capital conservation buffer (Section 434 of the Decision on Capital Adequacy) |
2.5% | The Decision on Capital Adequacy of 15 December 2016 sets out that a bank is obliged to maintain a capital conservation buffer on an individual and consolidated basis equal to 2.5% of its risk-weighted assets. The capital conservation buffer may consist only of Common Equity Tier 1 capital and applies as of 30 June 2017. |
| Countercyclical capital buffer (Section 435 of the Decision on Capital Adequacy) |
0% | The Decision on the Countercyclical Buffer Rate for the Republic of Serbia of 8 June 2017 sets the rate at 0%, in effect as of 30 June 2017. At its meeting of 11 March 2021, the NBS Executive Board decided to keep the CCyB rate at 0%, bearing in mind the persisting global uncertainty caused by the spread of the coronavirus, as well as:
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| Capital buffer for a systemically important bank (Section 452 of the Decision on Capital Adequacy) |
1–2% | The Decision on Establishing a List of Systemically Important Banks in the Republic of Serbia and Capital Buffer Rates for Those Banks of 7 May 2020 establishes systemically important banks and the capital buffer rates that those banks are obligated to maintain as of 30 June 2020. |
| Systemic risk buffer (Section 446 of the Decision on Capital Adequacy) |
3% | The Decision on the Rate and Manner of Maintaining the Systemic Risk Buffer of 8 June 2017, with changes from 11 January 2018, sets the systemic risk buffer, applied as of 30 June 2017.
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