Regulatory Alerts2016-12-19
CSSF Regulation No 16-14 on the Reciprocity of the 1% Systemic Risk Buffer Rate Adopted by the Central Bank of Estonia
The Luxembourg Commission for the Supervision of the Financial Sector (CSSF) issued Regulation No 16-14 to formally recognize and apply the 1% systemic risk buffer rate adopted by the Central Bank of Estonia. This measure requires Luxembourg credit institutions to apply the buffer to their exposures in Estonia if those individual exposures, calculated on a consolidated basis, exceed a materiality threshold of 200 million euros. The regulation implements the recommendation of the Systemic Risk Committee to ensure macroprudential reciprocity and mitigate structural vulnerabilities in the Estonian financial sector.
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