National macroprudential authorities have been established following the issuance of ESRB Recommendation on the macroprudential mandate of national authorities (ESRB/2011/3). In accordance with the Capital Requirements Directive (CRD V), countries of the European Economic Area (EEA) are also required to have national designated authorities. The ESRB periodically publishes a list of these national macroprudential authorities and national designated authorities.
National authorities are required to notify the ESRB of their macroprudential measures in accordance with the Capital Requirements Directive (CRD V), the Capital Requirements Regulation (CRR II) and various ESRB recommendations.
The ESRB periodically publishes two overviews of macroprudential measures.
The first is the “Overview of national macroprudential measures”, which includes all types of current and past measures. The second is the “Overview of national capital-based measures”, which includes only currently active capital-based measures that apply to the systemically important institutions in EEA countries.
National authorities should use the common ESRB/European Central Bank/European Banking Authority notification templates when notifying the ESRB of macroprudential measures (including reciprocating measures).
The countercyclical capital buffer (CCyB) is designed to help counter procyclicality in the financial system.
Global systemically important institutions (G-SIIs) and, subject to national discretion, other systemically important institutions (O-SIIs) must fulfil supplementary requirements concerning the amount of Common Equity Tier 1 capital they are required to hold as a buffer.
The systemic risk buffer (SyRB) addresses systemic risks that are not covered by the Capital Requirements Regulation or by the CCyB or the G-SII/O-SII buffers.
These measures allow stricter risk weight requirements to be applied and address risks related to exposures secured by mortgages on residential or commercial immovable property.
The capital conservation buffer (CCoB) amounts to 2.5% of a bank’s total risk exposure. It must be made up of Common Equity Tier 1 capital.