ESRB updated the overview of national macro-prudential and capital-based measures in the European Economic Area. The overview of national macro-prudential measures covers several measures, including capital buffers, reciprocation measures, borrower-based measures, and others. The capital-based measures list includes the combined capital buffer requirements of individual banks, including capital conservation buffer, countercyclical capital buffer, systemic risk buffer (SRB), and global and other systemically important buffers (G-SII and O-SII).
The combined buffer requirement is calculated according to Article 131 of the Capital Requirements Directive (CRD IV) but excludes mandatory or voluntary reciprocity of foreign macro-prudential measures according to recommendation ESRB/2015/2. It consists of common equity tier 1 (CET1) capital and comes in addition to a minimum requirement of 8% total capital (4.5% CET1 + 1.5% AT1 + 2% T2). Pillar 2 measures are not included. The minimum combined buffer requirement at country level corresponds to a bank not subject to any individual bank-level structural buffer (G-SII, O-SII, SRB). Additionally, ESRB periodically publishes an overview of the national capital-based measures and an overview of the national macro-prudential measures, which includes all types of current and past measures. National authorities are required to notify ESRB about their macro-prudential measures in accordance with the Capital Requirements Directive (CRD IV), the Capital Requirements Regulation (CRR), and various ESRB recommendations.
- Overview of Macro-Prudential Measures (XLSX)
- Overview of Capital-Based Measures (XLSX)
- Overview of Macro-Prudential Measures
Keywords: Europe, EU, Banking, Systemic Risk, Capital Based Measures, CRR/CRD, Macro-Prudential Measures, Regulatory Capital, Basel, ESRB
Next ArticleFCA Consults on Minor Changes to Its Handbook
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).