How should the countercyclical capital buffer requirement be applied?
Kauko, Karlo; Topi, Jukka; Vauhkonen, Jukka (18.06.2014)
Volyymi
88Numero
2Julkaisija
Bank of Finland
2014
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-201410303098Tiivistelmä
The countercyclical capital buffer requirement is one of the new macroprudential instruments that will come into use in Finland. It enables the strengthening of the banking sector’s resilience to systemic risks resulting from excessive credit growth. In setting the requirement, strong emphasis should be placed on a small range of indicators to be selected, defined and published in advance. In contrast, reducing or releasing the buffer should primarily be based on judgment by the relevant authorities.