GREECE Law and Practice Contributed by: Paris Tzoumas, Vivian Efthymiou and Dimitrios Mekakas, Zepos & Yannopoulos
tors to be considered for calculating the annual regular contributions are the amount of covered deposits and the degree of risk assumed by each credit institution. Within 20 calendar days from the beginning of every year, each credit institution must transmit to TEKE an annual list with the amount of its covered deposits as at the last day of each calendar quarter of the pre - ceding year. By 30 September every year, credit institutions must also submit to TEKE the data specified by TEKE and refer to the last day of the preceding year, for the purpose of determining the degree of risk assumed by that credit institu - tion. Extraordinary contributions are paid if the available funds of the DCS are not sufficient to compensate depositors. Extraordinary contri - butions must not exceed 0.5% of the covered deposits of each credit institution per calendar year. Higher contributions may be specified by a decision of TEKE’s BoD, with the consent of the BoG. 7. Prudential Regime 7.1 Capital, Liquidity and Related Risk Control Requirements Capital Adequacy Requirements The CRR and CRD IV (transposed into Law 4261) set out the capital adequacy requirements for credit institutions implementing, to some extent, the respective Basel III standards. Law 4799/2021 has transposed CRD V and BRRD II in Greece. As set out above in 1.1 Key Laws and Regulations , the EU Commission adopted the latest banking package in relation to the capital and prudential regime for credit institutions (CRR 3 and CRD VI), in order to be fully aligned with the Basel III framework. Credit institutions are required to have a mini - mum paid-up initial capital of EUR18 million.
The capital resources that a credit institution is required to maintain may be constituted by a mixture of common equity Tier 1 Capital, Addi - tional Tier 1 Capital and Tier 2 Capital. The CRR contains detailed legal and technical require - ments for eligibility of capital instruments. As regards liquidity requirements, the CRD IV and CRR, as amended, provide for quantitative liquidity standards, including the liquidity cover - age ratio (LCR) and the net stable funding ratio (NSFR). In particular, credit institutions must at all times satisfy the following own-funds requirements (which are expressed as a percentage of the credit institutions’ total risk exposure): • a common equity Tier 1 Capital ratio of 4.5%; • total capital ratio of 8%; and • a leverage ratio of 3%. Buffer Requirements The CRR 2 also introduced a leverage ratio buff - er requirement for institutions identified as global systemically important institutions (G-SIIs), to be applicable as of 1 January 2023. On 16 February 2021, the EU Commission issued a report and concluded that it does not consider it appropri - ate to introduce a leverage ratio surcharge for other systemically important institutions (O-SIIs) for the time being. The combined buffer requirement includes the capital conservation buffer, the counter-cyclical capital buffer, the G-SIIs buffer, the O-SIIs buffer and the systemic risk buffer. Α capital conser - vation buffer of 2.5% of a credit institution’s total exposures should be maintained so that credit institutions are able to avoid breaches of minimum capital requirements during periods of stress. In the context of its macro-prudential supervision, the BoG is responsible for set -
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