Browsing by Subject "countercyclical capital buffer requirement"

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  • Tölö, Eero (2015)
    Bank of Finland. Bulletin 2/2015
    In the wake of the international financial crisis, authorities have been given new tools to prevent such crises. These tools – or macroprudential instruments – are intended to enhance banks’ resilience to risk and prevent the excessive lending that often underlies asset price bubbles. In making decisions on deployment of the macroprudential tools, authorities will be supported by a set of early warning indicators confirmed by research data to best predict the outbreak of banking crises.
  • Haajanen, Jyrki; Putkuri, Hanna; Vauhkonen, Jukka (2015)
    Bank of Finland. Bulletin 2/2015
    The foreseeable tightening of bank capital requirements will only marginally add to bank costs and, by extension, to loan margins. The other side of the coin is that the most important tool at the disposal of the Financial Supervisory Authority for preventing threats to stability from excessive credit growth – the countercyclical capital buffer requirement – may turn out to be a more ineffective macroprudential instrument than hoped for. Regulation of minimum risk weights for housing loans is likely to be a more effective tool for reining in excessive growth in lending for house purchase.