
Contents
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13.1 Introduction 13.1 Introduction
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13.2 Historical Background 13.2 Historical Background
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13.3 The Regulatory and Legislative Framework on the CCoB and the CCyB at International and EU Level 13.3 The Regulatory and Legislative Framework on the CCoB and the CCyB at International and EU Level
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13.3.1 The soft law of the Basel III international standards 13.3.1 The soft law of the Basel III international standards
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13.3.2 The hard law of the CRD IV/CRR framework (as amended by CRD V/CRR II) 13.3.2 The hard law of the CRD IV/CRR framework (as amended by CRD V/CRR II)
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13.3.3 The revision of the CRD IV/CRR framework through the CRD V/CRR II 13.3.3 The revision of the CRD IV/CRR framework through the CRD V/CRR II
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13.4 The Implementation of the CCoB and the CCyB in the EU 13.4 The Implementation of the CCoB and the CCyB in the EU
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13.4.1 Common elements of the CCoB and the CCyB 13.4.1 Common elements of the CCoB and the CCyB
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13.4.2 The design and operational framework of the CCoB 13.4.2 The design and operational framework of the CCoB
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13.4.3 The design and operational framework of the CCyB 13.4.3 The design and operational framework of the CCyB
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13.5 The post-SSM Institutional Framework for Macro-prudential Policy in the EU 13.5 The post-SSM Institutional Framework for Macro-prudential Policy in the EU
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13.5.1 In the EU and the SSM area 13.5.1 In the EU and the SSM area
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13.5.2 At national level 13.5.2 At national level
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13.6 The Macro-prudential Policy Setup for the SSM Member States 13.6 The Macro-prudential Policy Setup for the SSM Member States
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13.7 The Macro-prudential Policy Setup at EU Level 13.7 The Macro-prudential Policy Setup at EU Level
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13.8 State of Play and Future Prospects for the CCoB and the CCyB 13.8 State of Play and Future Prospects for the CCoB and the CCyB
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13.8.1 State of play 13.8.1 State of play
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13.8.2 Future prospects 13.8.2 Future prospects
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13.9 Conclusion 13.9 Conclusion
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13 Capital Conservation Buffer and Countercyclical Capital Buffer
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Published:February 2022
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Abstract
This chapter illustrates the regulatory, legislative, and institutional framework for two capital-based macroprudential instruments: the Capital Conservation Buffer (CCoB) and the Countercyclical Capital Buffer (CCyB). It focuses on the Basel III-inspired EU legislative provisions on capital requirements, which introduced the CCoB and the CCyB for the first time across Member States. The chapter also analyses the specific EU legislative provisions of Directive 2013/36/EU pertaining to these two buffers, along with the relevant amendments introduced in 2019 by means of Directive (EU) 2019/878. It then considers the cyclical and dynamic CCyB, reflecting its more complex setup and discretionary application, compared to the non-cyclical, fixed requirement for the CCoB. Finally, the chapter looks at the allocation of relevant competences and particular tasks assigned to national and supranational authorities/bodies also in light of the major institutional shift marked by the creation of the Banking Union.
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