The National Bank of Bulgaria’s Governing Council has confirmed a systemic risk buffer of 3% for all banks, applying to all exposures in the Republic of Bulgaria. The buffer applies on both an individual and consolidated basis. The Bank’s review of risks linked to the banking sector’s structural characteristics, risks inherent to banking activity, and risks from the external environment found that long-term macroprudential and systemic risks persist, with heightened uncertainty from geopolitical risks and trade fragmentation supporting the decision to maintain the existing capital reserve. The decision was taken in line with the macroprudential procedures involving the European Central Bank under Article 5 of Council Regulation (EU) No 1024/2013. Under the National Bank of Bulgaria’s rules, the decision is disclosed following notification to the European Systemic Risk Board and the relevant competent and designated authorities in other EU Member States, and the Bank’s website section on the systemic risk buffer has been updated.
National Bank of Bulgaria 2025-12-11
National Bank of Bulgaria confirms a 3% systemic risk buffer for all banks’ exposures in Bulgaria
The National Bank of Bulgaria has confirmed a systemic risk buffer of 3% for all banks, applicable to all exposures in Bulgaria. This decision, aligned with macroprudential procedures involving the European Central Bank, reflects persistent macroprudential and systemic risks, including geopolitical uncertainties and trade fragmentation. The decision follows notification to the European Systemic Risk Board and relevant EU authorities.