Macroprudential decision: FIN-FSA does not impose a countercyclical capital buffer requirement on credit institutions

The Board of the Financial Supervisory Authority (FIN-FSA) has decided not to activate the countercyclical capital buffer (CCyB) requirement for credit institutions, and therefore the CCyB rate will remain at zero.
 
The credit-to-GDP gap, used as the primary indicator for setting a countercyclical capital buffer requirement, continues to give a reference value of 0% for the CCyB rate. Despite signals of higher risks, supplementary risk indicators are not signalling such an increase in financial system risks as would necessitate an immediate rise in the CCyB requirement with a view to improving banks’ cyclical risk resilience. The Board's assessment of the need to tighten the CCyB requirement took into consideration also other macroprudential policy tools.

In addition, the Board took a decision to reciprocate the 1% systemic risk buffer rate set by Eesti Pank. The systemic risk buffer requirement applies to the balance sheet items and off-balance sheet commitments located in Estonia of all credit institutions authorised in Finland. Credit institutions must fulfil the risk buffer requirement as of 1 January 2019.

For further information, please contact:

• Samu Kurri, Head of Department, Institutional Supervision, tel. +358 9 183 5247.

Appendices

• Board’s macroprudential decision (pdf)
• Macroprudential decision proposal by the Director General of the FIN-FSA circulated for comments (pdf, in Finnish)
• Opinions (in Finnish)
• Bank of Finland (pdf)
• Ministry of Finance (pdf)
• Ministry of Social Affairs and Health (pdf)

Indicators

• Macroprudential analysis indicators

See also

• What does the stability of the financial system mean?
  • Macroprudential instruments
  • Decision making