|Capital conservation buffer
(Section 434 of the Decision on Capital Adequacy)
||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)
||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:
Explanation: The credit-to-GDP ratio in Q4 2020 was slightly below its long-term trend. The mildly negative gap in the share of total real credit in real GDP is still below the 2pp benchmark, which is needed for the introduction of the countercyclical capital buffer. Setting the CCyB rate above 0% in conditions of persisting global uncertainty caused by the spread of the spread of the coronavirus could impact the potential future growth of lending.
- Guide for setting the CCуB rate: 0%;
- Credit-to-GDP ratio: 80.2%;
- Deviation of credit-to-GDP ratio from its long-term trend (credit-to-GDP gap): -0.04 pp.
|Capital buffer for a systemically important bank
(Section 452 of the Decision on Capital Adequacy)
||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)
||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.
- The systemic risk buffer rate is equal to 3% of total foreign currency and foreign currency-indexed placements of a bank approved to corporates and households in the Republic of Serbia.
- All banks whose share of foreign currency and foreign currency-indexed placements approved to corporates and households in the Republic of Serbia in total placements of that bank approved to corporates and households in the Republic of Serbia exceeds 10% are obliged to maintain the systemic risk buffer.
- Explanation: The systemic risk buffer is introduced to limit the risk of euroisation, one of the key structural non-cyclical systemic risks to the stability of the financial system of the Republic of Serbia.
- Exposures: The systemic risk buffer recognises exposures in the Republic of Serbia.