The countercyclical capital buffer rate for covering the usual level of cyclical risks in the Czech Republic

Miroslav Plašil

from Czech National Bank, Research and Statistics Department

Abstract: This article sets out to present the principal features of the application of a non-zero countercyclical capital buffer rate when cyclical financial risks are their usual levels, and to summarise the main arguments for the macroprudential authority to apply such an approach. It goes on to present two methods for calibrating the non-zero rate for the Czech economy and to discuss the right timing for reaching that rate. Both methods imply a need to create a buffer rate of around 1% when cyclical risks are at their usual level. This rate should be reached within two years after the acute phase of a cyclical contraction or financial crisis has subsided.

Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.cnb.cz/export/sites/cnb/en/financial-s ... /tafs_2019_02_en.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cnb:ocpubc:tafs2019/2

Access Statistics for this chapter

More chapters in Occasional Publications - Chapters in Edited Volumes from Czech National Bank, Research and Statistics Department Contact information at EDIRC.
Bibliographic data for series maintained by Tomas Karhanek ().