Decision on the Requirement to Maintain a Systemic Risk Buffer for Banks and Savings Banks

Evidentiary Data Collection: Other General and Individual Acts Decision on the Requirement to Maintain a Systemic Risk Buffer for Banks and Savings Banks Official Gazette of the Republic of Slovenia, No. 60/22 , 131/23 and 15/26 – ZBan-4 ID: SKLE12826 SOP: 2022-01-1380 Adopted: 28. 4. 2022 Published: 5. 5. 2022 Effective from: 6. 5. 2022 Type of Act: Decision Lead Authority: Banka Slovenije Adopting Authority: Banka Slovenije Forms Text NPB 1

Warning: The unofficial consolidated text of the regulation represents only an informative working tool, for which the authority does not guarantee any compensation or otherwise.

The unofficial consolidated text of the Decision on the Requirement to Maintain a Systemic Risk Buffer for Banks and Savings Banks includes:

• Decision on the Requirement to Maintain a Systemic Risk Buffer for Banks and Savings Banks (Official Gazette of the Republic of Slovenia, No. 60/22 of 6. 5. 2022),
• Decision amending the Decision on the Requirement to Maintain a Systemic Risk Buffer for Banks and Savings Banks (Official Gazette of the Republic of Slovenia, No. 131/23 of 22. 12. 2023).

DECISION

on the requirement to maintain a systemic risk buffer for banks and savings banks

(unofficial consolidated text No. 1)

Article 1

(content and purpose of the decision)

(1) Banka Slovenije introduces a systemic risk buffer with the aim of "mitigating and preventing excessive credit growth and excessive financial leverage" and "limiting the concentration of direct and indirect exposure."

(2) This decision further specifies in relation to the requirement to maintain a systemic risk buffer for banks and savings banks (hereinafter: banks):

1. banks for which the systemic risk buffer applies,
2. exposures for which the systemic risk buffer rates apply,
3. systemic risk buffer rates, and
4. the date from which banks must maintain the systemic risk buffer.

(3) The provisions of this decision apply to all banks, specifically at the highest level of application of requirements in the Republic of Slovenia, which applies to each individual bank, whether on an individual, sub-consolidated, or consolidated basis.

(4) Notwithstanding the preceding paragraph, the provisions of this decision do not apply to banks that are simultaneously included in the prudential consolidation of a parent bank of the Republic of Slovenia based on Article 18 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L No. 176 of 27 June 2013, p. 1) as amended.

Article 2

(types of exposures and systemic risk buffer rate)

Banka Slovenije sets the requirement to maintain a systemic risk buffer for sectoral exposures in the Republic of Slovenia from the first and second indents of point 4 of paragraph 1 of Article 247 of the ZBan-3 Act. For the aforementioned sectoral exposures, Banka Slovenije sets the following systemic risk buffer rates:

1. 0.5% for all retail exposures to natural persons secured by residential immovable property;
2. 0.5% for all other exposures to natural persons.

The Decision on the Requirement to Maintain a Systemic Risk Buffer for Banks and Savings Banks (Official Gazette of the Republic of Slovenia, No. 60/22 ) contains the following transitional and final provision:

"Article 3

(date of commencement of maintaining the buffer)

Banks must comply with the requirement to maintain a systemic risk buffer from 1 January 2023.

Article 4

(entry into force of the decision)

This decision shall enter into force on the fifteenth day after its publication in the Official Gazette of the Republic of Slovenia."

The Decision amending the Decision on the Requirement to Maintain a Systemic Risk Buffer for Banks and Savings Banks (Official Gazette of the Republic of Slovenia, No. 131/23 ) amends Article 3 of the decision so that it reads:

"Article 3

(date of commencement of maintaining the buffer)

Banks must comply with the requirement to maintain a systemic risk buffer from 1 January 2023.

Banks shall apply the reduced rate from the amended point 1 of Article 2, namely 0.5% for all retail exposures to natural persons secured by residential immovable property, in their calculation of the systemic risk buffer requirement from 1. 1. 2025 onwards."

and contains the following final provision:

"Article 3

(entry into force of the decision)

This decision shall enter into force on the fifteenth day after its publication in the Official Gazette of the Republic of Slovenia."