BaFin is requesting feedback on increasing the domestic countercyclical capital buffer (CCyB) to 0.25%, with effect from July 01, 2019, pursuant to Article 92(3) of Capital Requirements Regulation (CRR). BaFin intends to increase the CCyB rate to implement the Financial Stability Committee (Ausschuss für Finanzstabilität, or AFS) recommendation, which was published in May 2019. The new CCyB rate must be applied from July 01, 2020 for the calculation of the institution-specific CCyB. The feedback period for this consultation ends on June 25, 2019.
BaFin had, in May 2019, announced that the Financial Stability Committee (Ausschuss für Finanzstabilität, or AFS) submitted a recommendation (to BaFin) that the domestic CCyB be activated from the third quarter of 2019 and raised to 0.25%. CCyB will apply to banks and preemptively strengthen the resilience of the financial system to cyclical systemic risks. Banks must meet the new requirements within twelve months of their activation. The measure supports sustainable lending to the real economy, especially in times of stress. In its analysis and assessment of the risk situation of the German banking system, the Financial Stability Committee considers it necessary to strengthen the loss capacity of the German banking system due to the cyclical systemic risks that could affect financial stability in Germany. The Financial Stability Committee is the central body of macro-prudential supervision of the financial system in Germany. It strengthens the cooperation of institutions responsible for financial stability. The Federal Ministry of Finance, Deutsche Bundesbank, and BaFin are represented in the Committee.
Related Links (in German)
Comment Due Date: June 25, 2019
Effective Date: July 01, 2019
Keywords: Europe, Germany, Banking, CCyB, Basel III, Systemic Risk, Macro-Prudential Policy, CRR, BaFin
Across 35 years in banking, Blake has gained deep insights into the inner working of this sector. Over the last two decades, Blake has been an Operating Committee member, leading teams and executing strategies in Credit and Enterprise Risk as well as Line of Business. His focus over this time has been primarily Commercial/Corporate with particular emphasis on CRE. Blake has spent most of his career with large and mid-size banks. Blake joined Moody’s Analytics in 2021 after leading the transformation of the credit approval and reporting process at a $25 billion bank.
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