CSSF Sets Countercyclical Capital Buffer Rate for Banks
CSSF published Regulation No. 20-01, which specifies that the countercyclical buffer rate has been set at 0.50%. This rate, which will be apply from January 01, 2021, has been set in accordance with the recommendation of the Systemic Risk Committee of March 12, 2020. Annex 1 of the regulation lays out elements considered for setting the applicable countercyclical buffer rate while Annex 2 of the regulation presents the text of the Committee recommendation. The regulation shall come into force on the day of its publication in the Official Journal of the Grand Duchy of Luxembourg. CSSF has also published frequently asked questions (FAQs) related to the COVID-19 pandemic.
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Keywords: Europe, Luxembourg, Banking, CCyB, FAQs, COVID-19, Regulatory Capital, CSSF
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