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
Dr. Samuel W. Malone
Sam leads the quantitative research team within the CreditEdge™ research group. In this role, he develops novel risk and forecasting solutions for financial institutions while providing thought leadership on related trends in global financial markets.
Previous Article
EC Publishes Fourth Progress Report on Reduction of NPLs in EU BanksRelated Articles
|
News
BCBS Consults on Revised Disclosures for Market Risk FrameworkBCBS launched a consultation on the revised disclosure requirements for the market risk framework for banks.
November 14, 2019
WebPage
Regulatory News
|
|
News
FSB Examines Implementation of Resolution Regimes in Financial SectorFSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions and sets out plans for further work.
November 14, 2019
WebPage
Regulatory News
|
|
News
PRA Publishes Final Policy on Maintenance of TMTP Under Solvency IIPRA published the policy statement (PS25/19) that contains the final supervisory statement (SS6/16) on maintenance of the transitional measure on technical provisions (TMTPs) under Solvency II.
November 14, 2019
WebPage
Regulatory News
|
|
News
BCBS Consults on Disclosure Templates of Sovereign Exposures of BanksBCBS published a consultation on the voluntary disclosure templates related to sovereign exposures of banks.
November 14, 2019
WebPage
Regulatory News
|
|
News
IAIS Adopts ComFrame, ICS, and Holistic Framework for Systemic RiskIAIS adopted a comprehensive set of reforms—Common Framework (ComFrame), Insurance Capital Standard (ICS) Version 2.0, and Holistic Framework for Systemic Risk—that will enable effective cross-border supervision of insurance groups and contribute to global financial stability.
November 14, 2019
WebPage
Regulatory News
|
|
News
PRA Publishes Templates for Statistical Disclosures Under Solvency IIPRA published templates for statistical disclosures, as required under Article 31(2) of the Solvency II Directive.
November 14, 2019
WebPage
Regulatory News
|
|
News
FASB Proposes Improvements to Derivatives and Hedging StandardFASB proposed an Accounting Standards Update, on codification improvements to hedge accounting under Topic 815, to clarify certain sections of the 2017 hedge accounting standard (Update 2017-12).
November 13, 2019
WebPage
Regulatory News
|
|
News
FASB Approves Guidance to Assist in Transition to New Reference RatesFASB approved an Accounting Standards Update (Topic 848) to provide temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the reference rate reform on financial reporting.
November 13, 2019
WebPage
Regulatory News
|
|
News
BIS and MAS Launch Innovation Hub in SingaporeBIS and MAS launched the BIS Innovation Hub Center in Singapore.
November 13, 2019
WebPage
Regulatory News
|
|
News
MAS and Industry to Create Framework for Adoption of Responsible AIDAMAS announced that it is working with financial industry partners to create a framework for financial institutions to promote the responsible adoption of Artificial Intelligence and Data Analytics (AIDA).
November 13, 2019
WebPage
Regulatory News
|
