The countercyclical capital buffer (CCyB) is part of a set of macroprudential 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 materialise. This will help maintain the supply of credit and dampen the downswing of the financial cycle. The CCyB can also help dampen excessive credit growth during the upswing of the financial cycle.
As part of the information accompanying the announcement, designated authorities must notify the ESRB of each quarterly setting of CCyB rates. The Capital Requirements Directive (CRD IV) allows for some flexibility on how the Directive is implemented by Member States. In particular Article 160 provides for transitional provisions in the application of the countercyclical capital buffer. A note on relevant CCyB caps in particular Member States explains how the transitional rules have been implemented. All country answers are also available.
The information on caps applied by Member States will be updated in light of any further notifications received by the ESRB.
In light of current developments, several countries have announced that they are reducing their CCyB rates. This is the case, for example, in Belgium, Denmark, France, Germany, Iceland, Ireland, Norway , Sweden and the United Kingdom .
Please consult the respective national authorities’ websites for the most up-to-date information. The tables below will be updated after the ESRB has received official notifications of the measures (last updated: 23 September 2020).
The following map shows current CCyB rates set in Europe:
The following table shows current CCyB rates as well as pending CCyB rates announced by designated authorities (new data are highlighted in red):
Exemptions are provided for certain small and medium-sized investment firms from holding a CCyB in the following countries: Croatia, Cyprus, Luxembourg, Malta, Poland, Slovakia, Sweden and the United Kingdom.