Due to the uncertain impact of the COVID-19 pandemic, BaFin lowered the buffer from 0.25% to 0% as of April 2020, where it has remained ever since. In light of the COVID-19 pandemic, the Financial Stability Committee deems a countercyclical capital buffer (CCyB) of 0% until end-2021 as appropriate.

Next to assessing the current risk situation in the German financial system, the Financial Stability Committee also discussed the introduction of the countercyclical capital buffer as a new macroprudential instrument. It noted that the sustained low interest rates in particular could remain the starting point for a variety of potential negative developments. This continues to require careful …

BaFin reduced the countercyclical capital buffer for German banks in light of the uncertain impact of the Covid-19 pandemic. The Financial Stability Committee endorses the lowering of the countercyclical capital buffer in March 2020.

At its December meeting, the Financial Stability Committee (FSC) assessed the current risk situation in the German financial system. It concluded that macroprudential policy should return to prevention mode. Given the existing uncertainties over economic trends, the FSC will assess which instruments should be activated swiftly in 2022 to address the identified risks as effectively as possible.

The German Financial Stability Committee (FSC) has analysed which macroprudential instruments currently most effectively address the risks identified in the financial system. The FSC welcomes the package of macroprudential measures announced by the Federal Financial Supervisory Authority (BaFin).