These sustain from the sum of bank´s capital conservation buffer, countercyclical buffer, and systematic buffers, combined to form the Combined Buffer Requirement (CBR), which can absorb losses whilst still providing essential services to the economy. Their main goal is to prevent adverse influence on the economy while improving the financial system´s resilience to absorb unforeseen shocks. The safety net includes four main components, to be met through main tier 1 capital (CET1):

1) Capital conservation buffer (CCoB), which make sure that banks support a steady flow of financing to the economy in undesirable scenarios. 2.5% of risk-weighted positions.

2) Reserve for other systemically important institutions (O-SII), which is relevant to banks that are systemically relevant. Up to 3% of risk-weighted positions.

3) Sector Systemic Risk Reserve (sSyRB), of which the objective is to protect banks against shocks in residential estate market. 4% of risk-weighted positions.

4) Countercyclical reserve (CCyB), which will ensure banks can better face unforeseen cyclical shocks, will be put to action in January 2026 with an initial 0.75% of risk-weighted position.

Portugal´s banks have strong levels to meet regulation requirements with financial institutions transcending requirements by 6%.