Macroprudential capital buffers – objectives and usability

Markus Behn, Elena Rancoita and Rodriguez d’Acri, Costanza

Macroprudential Bulletin, 2020, vol. 11

Abstract: This article discusses capital buffer usability in the Basel III framework. Although buffers are intended to be used in a crisis, a number of factors can prevent banks from drawing them down in case of need, with potentially adverse effects for the economy. The article reviews the functioning of the framework in the COVID-19 crisis and outlines possible implications for future policy design. JEL Classification: G01, G21, G28

Keywords: bank regulation; Basel III; buffer usability; capital buffers; countercyclical capital buffer; macroprudential policy; macroprudential space (search for similar items in EconPapers)
Date: 2020-10
Note: 2203070
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Citations: View citations in EconPapers (3)

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