BaFin Consults on AFS Recommendation to Increase CCyB for Banks
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
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
EC Publishes Fourth Progress Report on Reduction of NPLs in EU BanksRelated Articles
EC Adopts Financial Reporting Changes Arising from Benchmark Reforms
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HMT Updates List of Post-Brexit Equivalence Decisions in UK
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA Issues Erratum for Technical Package on Reporting Framework 3.0
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA Publishes FAQ on Measurement of Credit Risk Weighted Assets
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
EBA Publishes Risk Dashboard for Third Quarter of 2020
EBA published the quarterly risk dashboard, along with the results of the Risk Assessment Questionnaire survey among 60 banks and 15 market analysts.
ECB Analysis Shows Privacy as Biggest Concern in Use of Digital Euro
ECB concluded the public consultation on the introduction of a digital euro in EU.
ECB Finalizes Guide on Supervisory Approach to Bank Consolidation
ECB published a guide that sets out the supervisory approach to consolidation in the banking sector.
SRB Chair Outlines Work Priorities for 2021
The SRB Chair Elke König published an article setting out work priorities for 2021.
FDIC Selects Companies to Compete in Final Phase of Tech Sprint
FDIC has selected 11 technology companies—including BearingPoint, Fed Reporter, Inc, and S&P Global Market Intelligence, LLC—for inclusion in the third and final phase of the rapid prototyping competition.
