ESRB European Systemic Risk Board : Notification by Czech National Bank on seven other systematically important institutions (O-SIIs)

Notification template for Article 131 CRD - Other Systemically Important Institutions (O-SII)

Please send this template to

• •[e-mail] when notifying the ESRB;

• •[e-mail] when notifying the ECB;

• •[e-mail] when notifying the EBA.

Emailing this template to the above-mentioned addresses constitutes an official notification, no further official letter is required. In order to facilitate the work of the notified authorities, please send the notification template in a format that allows electronically copying the information.

1. Notifying national authority
1.1 Name of the notifying authority	Czech National Bank
2. Description of the measure
2.1 Concerned institution or group of institutions	The Czech Republic has designated as O-SIIs the following institutions on the basis of their highest consolidated situations: O-SII institution LEI code Československá obchodní banka, a.s. Komerční banka, a.s. Q5BP2UEQ48R75BOTCB92 IYKCAVNFR8QGF00HV840 Česká spořitelna, a.s. 9KOGW2C2FCIOJQ7FF485 UniCredit Bank CZ and SK, a.s. KR6LSKV3BTSJRD41IF75 PPF FH B.V. (relevant entity of the PPF banka regulated consolidated group) Raiffesenbank, a.s. 31570010000000036567 31570010000000004460 Jakabovič & Tkáč (relevant entity of the J&T banka regulated consolidated group) 31570010000000043842
2.2 Level of the buffer applied	The O-SII buffer is not applied in the Czech Republic. However, an institution-specific systemic risk buffer applies (section 6.2).
2.3 Name of the EU ultimate parent institution	O-SII institution Ultimate parent Československá obchodní banka, a.s. KBC Group NVLEI code 213800X3Q9LSAKRUWY91 Komerční banka, a.s. Česká spořitelna, a.s. Société Générale SA Erste Group Bank AG O2RNE8IBXP4R0TD8PU41 PQOH26KWDF7CG10L6792 UniCredit Bank CZ and SK, UniCredit S.p.A. 549300TRUWO2CD2G5692 a.s. PPF FH B.V. (relevant entity of the PPF banka regulated consolidated group) PPF Group N.V. 31570030000000000550 Raiffesenbank, a.s. Raiffeisen-Landesbanken-Holding GmbG 529900JP9C734S1LE008 Jakabovič & Tkáč (relevant entity of the J&T banka regulated consolidated group) J&T Finance Group SE 315700E9POA724IWFP59

Date of template version: 2016-03-01

1/3

2.4 Names of subsidiaries	If any of the concerned institutions is a parent institution and the buffer is applied on a (sub)consolidated level, please name the subsidiaries of the institution that are notified as O-SIIs (please give name and LEI code). Not applicable as a buffer has not been set.
3. Timing of the measure
3.1 Timing of the Decision	29 November 2018
3.2 Timing of the Publication	30 November 2018
3.3 Disclosure	The designation of O-SIIs is disclosed at the website of the Czech National Bank(Link). The O-SII buffer is not applied in the Czech Republic.
3.4 Timing of Application	1 January 2019
3.5 Phasing in	The O-SII buffer is not applied in the Czech Republic. The designation of the O-SII will apply immediately from 1 January 2019 application.
3.6 Review of the measure	The identification of O-SIIs will be reviewed by 1 December 2019.
4. Reason for O-SII identification and activation of the O-SII buffer
4.1 Scores of concerned institution or group of institutions, as per EBA guidelines on the assessment of O-SIIs (Article 131.3)	O-SII institution Overall score (in basis points) Československá obchodní banka, a.s. Česká spořitelna, a.s. 2066 1580 Komerční banka, a.s. 1467 UniCredit Bank CZ and SK, a.s. 1059 PPF FH B.V. (relevant entity of the PPF banka regulated consolidated group) Raiffesenbank, a.s. 733 443 Jakabovič & Tkáč (relevant entity of the J&T banka regulated consolidated group) 339 For more information, a separate excel file has been sent with notification.
4.2 Methodology and indicators used for designation of the O-SII (Article 131.3)	Please provide information on: a. whether you followed the EBA guidelines on the assessment of O-SIIs The CNB fully follows the EBA guidelines on the assessment of O-SIIs b. which threshold score has been set to identify O-SIIs In accordance with paragraph 9 of the Guidelines, it raises the threshold for designating entities as O-SIIs to the highest level allowed by the Guidelines (425 basis points, i.e. 4.25%). c. which overall score is attributed to the O-SIIs For O-SIIs overall score see section 4.1 above. d. which of the optional indicators have been used to justify supervisory assessment decisions, if any, and what are the scores. Share in private sector deposits and private sector loans in domestic banking sector, base threshold level stipulated by Guidelines, former O-SII status. e. why these optional indicators are relevant for the Member State Significant share in private sector deposits and private sector loans in the domestic banking sector are considered critical functions of the bank. We take into account former O-SII status due to consistency of the O-SII group.
f. why the bank is systemically important in terms of those particular optional indicators Optional indicator is not used to identify additional O-SII's. If the institution's score is nearing the 4.25% threshold, the CNB assesses the volume of retail deposits, private sector loans (critical functions) and former O-SII status (consistency). g. whether relevant entities with relative total assets not in excess of 0.02% have been excluded from the identification process In accordance with paragraph 12 of the Guidelines, it exempts investment firms from the calculation, as they do not play an important enough role in the Czech financial system. h. names and scores of all relevant entities not excluded from the identification process (could be sent in a separate excel file, see 4.1) Separate excel file has been sent with notification. i. whether non-bank institutions have been included in the calculations No
4.3 Supervisory judgement	No.
4.4 Calibrating the O-SII buffer	The O-SII buffer is not applied in the Czech Republic.
4.5 Effectiveness and proportionality of measure	The O-SII buffer is not applied in the Czech Republic.
5. Cross-border and cross-sector impact of the measure
5.1 Assessment of cross-border effects and the likely impact on the internal market (Recommendation ESRB/2015/2)	As no O-SII buffer has been set, we do not anticipate any cross-border effects.
5.2 Assessment of leakages and regulatory arbitrage within the notifying Member State	As no O-SII buffer has been set, we do not anticipate any leakages and regulatory arbitrage with the Czech financial sector
6. Combinations and interactions with other measures
6.1 Combinations between G-SII and O-SII buffers (Article 131.14)	There are no G-SIIs in the Czech Republic and the O-SII buffer is not applied.
6.2 Combinations with SRB buffers (Article 131.14 + Article 133.5)	Are any of the institutions subject to a systemic risk buffer? If yes, please provide the following information: a. What is the level of the systemic risk buffer (in %) applied to the concerned institution O-SII institution The systemic risk buffer (%) Československá obchodní banka, a.s. Česká spořitelna, a.s. 3.0 3.0 Komerční banka, a.s. 3.0 UniCredit Bank CZ and SK, a.s. Raiffesenbank, a.s. 2.0 1.0 For more information see the website of the Czech National Bank(Link). b. Is the systemic risk buffer applied to all exposures located in your Member State only? No, the systemic risk buffer applies to all exposures. c. Is the systemic risk buffer applied at the same consolidation level as the O-SII buffer? The O-SII buffer is not applied in the Czech Republic.
6.3 O-SII requirement for a subsidiary (Article 131.8)	In case the O-SII is a subsidiary of an EU parent institution which is subject to a G-SII or O-SII buffer on a consolidated basis, what is the G-SII or O-SII buffer rate on a consolidated basis of the parent institution? O-SII institutionUltimate parent Československá obchodní banka, a.s. KBC Group NV G-SII buffer - O-SII buffer 1.5 % Komerční banka, a.s. Česká spořitelna, a.s. Société Générale SA Erste Group Bank AG 1 %** -2%* UniCredit Bank CZ and SK, a.s. UniCredit S.p.A. Raiffesenbank, a.s. Raiffeisen-Landesbanken-Holding GmbG 1 %** -2%* * Erste Group Bank and Raiffeisen Bank International should maintain an O-SII buffer of 2% with a gradual phase in. Until end-2018 the level of O-SII buffer for these banks will not exceed 1%. ** Société Générale SA and UniCredit S.p.A. should maintain an O-SII buffer of 1 % with a gradual phase in. Until end-2018 the level of O-SII buffer for these banks will not exceed 0.75 %.
6.4 Interaction with other measures	Not applicable as a buffer has not been set.

7. Miscellaneous
7.1 Contact person(s) at notifying authority	Libor Holub, [phone],[e-mail] Tomáš Konečný, [phone],[e-mail] Lukáš Pfeifer, [phone],[e-mail]
7.2 Any other relevant information