Capital buffers
According to Chapter X of Act No. 161/2002 on Financial Undertakings financial undertakings shall hold capital buffers.
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Decisions on capital buffer requirements
Capital buffers: Arion bank, Íslandsbanki og Landsbankinn
| Date | 1.4.2016 | 1.1.2017 | 15.5.2019 | 1.2.2020 | 19.3.2020 | 29.9.2022 | 15.3.2024 | Capital buffer |
|---|---|---|---|---|---|---|---|---|
| Systemic risk buffer | 3.00% | 3.00% | ||||||
| O-SIIs buffer | 2.00% | 2.00% | ||||||
| Countercyclical capital buffer | 1.75% | 2.00% | 0.00% | 2.00% | 2.50% | 2.00% | ||
| Capital conservation buffer | 2.50% | 2.50% | ||||||
| Combined buffer requirement | 9.50% |
Capital requirements: Commercial banks
| Capital requirements | Arion bank | Íslandsbanki | Landsbankinn | Kvika |
|---|---|---|---|---|
| Pillar I | 8% | 8% | 8% | 8% |
| Pillar II-R* | 2.1% | 2.4% | 2.8% | 4% |
| Capital buffers | 9.3% | 9.3% | 9.3% | 6.7% |
| Combined capital requirements | 19.4% | 19.7% | 20.1% | 18.7% |
*Pillar II-R according to SREP 2023.
| Capital buffers/ Break down | Arion bank | Íslandsbanki | Landsbankinn | Kvika |
|---|---|---|---|---|
| Capital conservation buffer | 2.5% | 2.5% | 2.5% | 2.5% |
| O-SIIs buffer | 2.0% | 2.0% | 2.0% | |
| Countercyclical capital buffer* | 2.0% | 2.0% | 1.9% | 2.0% |
| Systemic risk buffer* | 2.8% | 2.8% | 2.9% | 2.2% |
| Combined capital requirements | 9.3% | 9.3% | 9.3% | 6.7% |
*The weighted average of systemic risk and countercyclical buffers considering foreign exposures.
Capital buffers: indó sparisjóður, Kvika bank, Sparisjóður Austurlands, Sparisjóður Höfðhverfinga, Sparisjóður Strandamanna og Sparisjóður Suður-Þingeyinga
| Date | 1.1.2017 | 1.1.2018 | 15.5.2019 | 1.1.2020 | 1.2.2020 | 19.3.2020 | 29.9.2022 | 15.3.2024 | Capital buffer |
|---|---|---|---|---|---|---|---|---|---|
| Systemic risk buffer | 2.00% | 3.00% | 3.00% | ||||||
| Countercyclical capital buffer | 1.75% | 2.00% | 0.00% | 2.00% | 2.50% | 2.00% | |||
| Capital conservation buffer | 2.50% | 2.50% | |||||||
| Combined buffer requirement | 7.50% |
Capital buffers: Fossar fjárfestingarbanki, Lánasjóður sveitarfélaga and Teya Iceland
| Date | 1.1.2017 | 15.5.2019 | 1.2.2020 | 19.3.2020 | 29.9.2022 | 15.3.2024 | Capital buffer |
|---|---|---|---|---|---|---|---|
| Countercyclical capital buffer | 1.75% | 2.00% | 0.00% | 2.00% | 2.50% | 2.00% | |
| Capital conservation buffer | 2.50% | 2.50% | |||||
| Combined buffer requirement | 4.50% |