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Macroprudential Instruments

The Bank of Greece pursues the ultimate and intermediate macroprudential objectives using the macroprudential instruments (measures) available to it under the provisions of the legislation in force.

In particular, Law 4261/2014, transposing Directive 2013/36/ΕU into national legislation, and Regulation (ΕU) 575/2013 provide for a set of macroprudential instruments available to the Bank of Greece, which include:

  1. the countercyclical capital buffer;

  2. the G-SII buffer;

  3. the O-SII buffer

  4. the systemic risk buffer;

  5. the measures envisaged by Article 458 of Regulation (ΕU) No. 575/2013, subject to the requirements specified therein. Such measures apply to institutions (as defined in Article 4 of Regulation (ΕU) No. 575/2013) authorised in Greece or a subset of those institutions and relate to: the level of own funds; the requirements for large exposures; the public disclosure requirements; the level of the capital conservation buffer; the liquidity requirements; and risk weights for targeting asset bubbles in the residential and commercial property sector, or intra-financial sector exposures.

  6. The measures provided for by Articles 124(2) and 164(5) of Regulation (ΕU) No. 575/2013. These measures include the possibility of setting a higher risk weight for residential or commercial real estate exposures and the possibility of setting higher minimum values of exposure-weighted average loss given default (LGD) for residential or commercial real estate exposures.

The macroprudential instruments available to the Bank of Greece are linked to the intermediate objectives of macroprudential policy as shown in the following table.