Regulatory Alerts2019-09-04 | General Administrative Act governing the rate for the domestic countercyclical capital buffer under section 10d of the KWGAdded · Updated
General Administrative Act on the Domestic Countercyclical Capital Buffer Rate
The Federal Financial Supervisory Authority (BaFin) has set the domestic countercyclical capital buffer rate at 0.25 percent of total risk exposure amounts, effective 1 July 2019. This rate must be applied to calculate institution-specific buffers starting 1 July 2020 and applies to all institutions, financial holding groups, and mixed financial holding groups subject to the German Banking Act. The adjustment follows a May 2019 recommendation by the German Financial Stability Committee, which identified cyclical systemic risks in Germany’s real estate and credit markets that necessitate enhanced banking sector resilience.
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