Capital Buffers
According to Article 86(a) of Act No. 161/2002 on Financial Undertakings financial undertakings shall hold capital buffers in accordance with Articles 86(b) – 86(e) of the same Act.
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Decisions on capital buffer requirements
Capital buffers: Arion bank, Íslandsbanki og Landsbankinn
| Date | 01.04.2016 | 01.01.2017 | 15.05.2019 | 01.02.2020 | Capital buffer |
|---|---|---|---|---|---|
| Systemic risk buffer | 3.00% | 3.00% | |||
| O-SIIs buffer | 2.00% | 2.00% | |||
| Countercyclical capital buffer | 1.75% | 2.00% | 1.75% | ||
| Capital conservation buffer | 2.50% | 2.50% | |||
| Combined buffer requirement | 9.25% |
D-SIB: Capital requirements
| Arion bank | Íslandsbanki | Landsbankinn | |
|---|---|---|---|
| Pillar I | 8.00% | 8.00% | 8.00% |
| Pillar II* | 3.10% | 1.70% | 3.40% |
| Capital buffers** | 8.90% | 9.10% | 9.00% |
| Combined capital requirements | 20.05% | 18.80% | 20.45% |
*Pillar II according to SREP at year-end 2018.
**Adjusted forreductions in systemic risk and countercyclical capital buffers for foreign exposures.
Capital buffers: Kvika bank, Sparisjóður Austurlands, Sparisjóður Höfðhverfinga, Sparisjóður Strandamanna og Sparisjóður Suður-Þingeyinga
| Date | 01.01.2017 | 01.01.2018 | 15.05.2019 | 01.01.2020 | 01.02.2020 | Capital buffer |
|---|---|---|---|---|---|---|
| Systemic risk buffer | 2.00% | 3.00% | 3.00% | |||
| Countercyclical capital buffer | 1.75% | 2.00% | 1.75% | |||
| Capital conservation buffer | 2.50% | 2.50% | ||||
| Combined buffer requirement | 6.25% |
Capital buffers: Borgun, Byggðastofnun, Lánasjóður sveitarfélaga, Lykill fjármögnun og Valitor
| Date | 01.01.2017 | 15.05.2019 | 01.02.2020 | Capital buffer |
|---|---|---|---|---|
| Countercyclical capital buffer | 1.75% | 2.00% | 1.75% | |
| Capital conservation buffer | 2.50% | 2.50% | ||
| Combined buffer requirement | 4.25% |
Countercyclical capital buffer
European Systemic Risk Board (ESRB) updates CCyB rates monthly here.