Securitisation and Regulation News

Basel Committee Releases Working Paper on Countercyclical Capital Buffer

The Basel Committee on Banking Supervision released a working paper that suggests a sectoral countercyclical capital buffer could aim to increase resilience against risks in particular sectors to maintain credit provision to these and other sectors in a downturn, and to lean against the cycle in the targeted sectors. The paper also acknowledges that such an approach would face operational challenges and add an additional layer of complexity to the macroprudential framework.

To the working paper