On 24 January 2024, the European Commission published its plans for the revision of the European macroprudential framework for banks. An important theme within this evaluation is the usability of capital buffers during a crisis. Against this background, the Ministry of Finance and DNB jointly make recommendations on the use of the Countercyclical Capital Buffer (CCyB).
The primary goal of the CCyB is to increase the resilience of banks when systemic risks build up, so that this buffer can be released when such risks materialize. This gives banks extra room in times of crises to absorb losses and to maintain lending. The Ministry of Finance and DNB advocate in a joint non-paper for more harmonization and consistency in the use of the CCyB between Member States. To this end, we see the need to further clarify the legal framework to better facilitate a positive CCyB in a standard risk environment. The proposed adjustments improve the usability of capital buffers during a crisis and lead to a more shock-resistant European banking sector and economy.
The recommendations are further explained in the joint non-paper.
Non-paper releasable capital and the CCyB
Starting January 9, 2025, DNB will request information on potential conflicts of interest through the fit and proper assessments application form.
Read more Fit and Proper Assessments: additional questions on potential conflicts of interest
On 31 May 2023, DNB announced an increase of the countercyclical capital buffer (CCyB) to 2%. Banks with loans outstanding in the Netherlands must comply with this requirement since 31 May 2024. DNB is required to determine the height of the CCyB on a quarterly basis.
Read more DNB maintains Countercyclical Capital Buffer at 2% – December 2024
DNB has reviewed the identification and buffer requirements for systemically important banks and maintains the current requirements.
Read more DNB maintains buffers for systemically important banks
On Tuesday 5th November from 3:00-4:45 PM CET DNB will organize a physical information session about fit and proper assessments.
Read more Information session about fit and proper assessments DNB
