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The central bank was prompted to do so by the fact that Coop Pank’s importance within the Estonian financial system has steadily grown in recent years. In particular, the bank has increased its market share in the areas of loans issued to and deposits opened by Estonian households and businesses, which was more than 5% at the end of 2023.

Coop Pank’s Chief Financial Officer Paavo Truu says the designation is recognition of the growth in business volumes in the bank in recent years.

“The additional capital buffer that comes with being named a systemically important credit institution will further strengthen our capitalisation and boost our resilience in a crisis,” he said. “We’ve secured a significant market share in Estonia, but our strategy is one of continued growth in the years ahead.”

Eesti Pank’s decision obliges Coop Pank to maintain an additional capital buffer of 0.5% as required of systemically important credit institutions.