The question relates to systemic risk buffers and whether they can be additive

The Systemic Risk Buffer (SRB) is an exposure-based measure, as Article 133 CRD refers solely to exposures. Articles 133(3) and 133 (8) CRD refer to "exposures", without indicating the type of risk giving rise to such exposures. Moreover, the SRB is not envisaged by the legislator to be applied beyond the geographical scope set out in Article 133(8) CRD IV. According to Article 134(1) CRD, other Member States may recognise the SRB rate set in accordance with Article 133 CRD and may apply that buffer rate to domestically authorised institutions for the exposures located in the Member State that sets that buffer rate. However, since an SRB rate is based only on exposures and not on risks, if a reciprocating Member State has already activated an SRB covering the same exposures subject to reciprocation, the two SRB rates cannot be cumulated. Instead they can be combined non-cumulatively. In other words, the higher-of rule applies: - If the SRB rate applied by the reciprocating Member State on the exposures subject to reciprocation is higher than the SRB rate to be reciprocated, the reciprocation is unnecessary. - If instead the SRB rate on the exposures subject to reciprocation is lower than the SRB rate to be reciprocated, then the reciprocating Member State may decide to recognise this higher rate on the exposures subject to reciprocation. The answer to this specific issue is without prejudice to the use of other macro-prudential instruments. Disclaimer: This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General for Financial Stability, Financial services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.