ECB favours higher countercyclical buffers
Releasable buffers only make up fraction of required capital
Economic conditions merit higher countercyclical capital buffers (CCyBs) in some countries, the European Central Bank says.
An ECB analysis of 113 banks shows that in aggregate, CCyB charges amounted to 0.08% of risk-weighted assets in 2018. As a percentage of required capital and all mandatory buffers, this translates to just 0.9%.
Minimum required capital – the sum of Pillar 1 and Pillar 2 requirements – amounted to 6.6% of RWAs. Through-the-cycle buffers –including the conservation buffer
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