Macroprudential policy and financial stability glossary



other systemically important institution
O-SII buffer
other systemically important institutions (O-SII) buffer
Official Journal of the European Union
other systemically important institutions (O-SII) buffer
A capital buffer that aims to reduce the moral hazard created by implicit support and guarantee of bailout using taxpayers’ money that such institutions enjoy due to their size, cross-border activities and interconnectedness. It has been implemented in Europe via Article 131 CRD IV, amounts to 0-2% of total risk exposure amount to be met with CET1 capital, and can be applied to domestically important institutions and to institutions important at EU level.