ESRB updated table showing the countercyclical capital buffer (CCyB) rates applicable in the countries in the Eurosystem. In September, the CCyB information has been updated for Austria, Denmark, Estonia, Greece, Italy, Norway, and Sweden. The table also contains the CCyB rates that have been announced, but not yet implemented, by the designated authorities.
As part of the information accompanying the announcement, designated authorities must notify ESRB about each quarterly setting of CCyB rates. The countercyclical capital buffer (CCyB) is part of a set of macro-prudential instruments, designed to help counter pro-cyclicality in the financial system. Capital should be accumulated when cyclical systemic risk is judged to be increasing, creating buffers that increase the resilience of the banking sector during periods of stress when losses materialize. This will help maintain the supply of credit and dampen the downswing of the financial cycle. A CCyB can also help dampen excessive credit growth during the upswing of the financial cycle.
Keywords: Europe, EU, Banking, CCyB, Capital Buffer, Macro-prudential Instrument, Systemic Risk, ESRB
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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.