Erscheinung:26.02.2021 | Topic Own funds, Macroeconomic supervision Countercyclical capital buffer: BaFin does not plan to increase the buffer rate this year
BaFin is leaving the countercyclical capital buffer (CCyB) at 0 percent and currently does not expect to increase it before the end of 2021. This is due to the need for credit in the real economy and possible loan defaults in the further course of the pandemic. The decision will allow the German banking sector to plan with more certainty, and will also make it easier for institutions to absorb losses from loan defaults and to continue to grant loans to companies and households to the extent required.
In response to the coronavirus pandemic, BaFin lowered the CCyB from 0.25 percent back to 0 percent with effect from April 2020. The buffer has since remained at this level. The level at which BaFin sets the countercyclical capital buffer after the coronavirus pandemic will largely depend on the development of cyclical vulnerabilities and risks in the banking sector. It is currently not possible to predict when the pandemic will end.
The countercyclical capital buffer is set by BaFin on a quarterly basis. When making its decision, BaFin takes into account the recommendations of the German Financial Stability Committee (Ausschuss für Finanzstabilität – AFS) and of the European Systemic Risk Board (ESRB).
