The improvement of the loss-absorbing capacity of systemically important institutions is a preventive macroprudential tool aimed at limiting contagion that might arise from insolvency or stress situations in general for systemically important institutions.
As from 2016, other systemically important institutions buffer (O-SII) is applied to all banks that have been identified as significant or systemically important due to their size, interconnectedness or noticeable cross-border activities.
In addition, the CNB uses the globally systemically important institutions buffer (G-SII), which is applied to those financial institutions that have been identified according to the G-SIFI[1] criteria agreed among the G20 members. There are no globally systemically important institutions in Croatia. However, some parent banks, owning the capital in Croatian banks, have that status.
[1] Globally Systemically Important Financial Institutiton
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