01/14/2022 | Press release | Distributed by Public on 01/14/2022 01:37
The improvement of the loss-absorbing capacity of systemically important institutions is a preventive macroprudential tool aimed at limiting contagion that might arise from insolvency or stress situations in general for systemically important institutions.
As from 2016, other systemically important institutions buffer (O-SII) is applied to all banks that have been identified as significant or systemically important due to their size, interconnectedness or noticeable cross-border activities.
In addition, the CNB uses the globally systemically important institutions buffer (G-SII), which is applied to those financial institutions that have been identified according to the G-SIFIcriteria agreed among the G20 members. There are no globally systemically important institutions in Croatia. However, some parent banks, owning the capital in Croatian banks, have that status.
Globally Systemically Important Financial Institutiton