Riksbank study tackles capital buffer challenges

Sveriges Riksbank
David Lundberg

Supervisors face a raft of challenges when implementing counter-cyclical buffers to address bubbles and business cycles in the financial system, according to a Sveriges Riksbank study.

Oversight bodies need to be especially careful timing the activation of a counter-cyclical buffer – start it too late, and they will need to imposed larger capital restrictions; end it too early, and extra credit handed out could be paid out by banks in dividends.

The Basel III accord imposes two capital requireme

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: