Arbeitspapier
Indicators used in setting the countercyclical capital buffer
According to EU legislation, the national authorities should use the principle of 'guided discretion' in setting the countercyclical capital buffer (CCB), which increases banks' resilience against systemic risk associated with periods of excessive credit growth. This means that the decision should be based on signals from a pre-determined set of early warning indicators, but that there should also be room for discretion, as there is always uncertainty associated with the use of early warning indicators. The European Systemic Risk Board (ESRB) recommends that the authorities use the deviation of the credit-to-GDP ratio from its long term trend value (credit-to-GDP gap) as the primary indicator in setting the CCB. In addition, designated authorities should use in their decision making indicators that measure private sector credit developments and debt burden, overvaluation of property prices, external imbalances, mispricing of risk, and strength of bank balance sheets. Based on an empirical analysis of data on EU countries and a large assortment of potential indicators, we propose a set of suitable early warning indicators for each of these categories.
- ISBN
-
978-952-323-035-4
- Sprache
-
Englisch
- Erschienen in
-
Series: Bank of Finland Research Discussion Papers ; No. 8/2015
- Klassifikation
-
Wirtschaft
Financial Crises
Financial Institutions and Services: Government Policy and Regulation
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Kalatie, Simo
Laakkonen, Helinä
Tölö, Eero
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Finland
- (wo)
-
Helsinki
- (wann)
-
2015
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Kalatie, Simo
- Laakkonen, Helinä
- Tölö, Eero
- Bank of Finland
Entstanden
- 2015
Ähnliche Objekte (12)
Buffer funding of unemployment insurance in a dynamic labour union model
Inflation targeting: analyzing indicators of inflation in Finland
Standard setting and competition in securities settlement
Leading inflation indicators in Finland: pairwise analysis of Granger-causality and cointegration
Compilation of early warning indicators for foreign trade employing a cut-off survey
Wage setting, taxes and demand for labour: Multivariate analysis of the cointegration relations
Price setting behavior in an open economy and the determination of Finnish foreign trade prices
Output gaps and cyclical indicators: Finnish evidence
An analysis of the embedded frequency content of macroeconomic indicators and their counterparts using the Hilbert-Huang transform
Indicators of the cyclically adjusted budget balance: The Bank of Finland's experience
Leading indicators of systemic banking crises: Finland in a panel of EU countries
Predicting rating changes for banks: How accurate are accounting and stock market indicators?
Buffer funding of unemployment insurance in a dynamic labour union model
Inflation targeting: analyzing indicators of inflation in Finland
Standard setting and competition in securities settlement
Leading inflation indicators in Finland: pairwise analysis of Granger-causality and cointegration
Compilation of early warning indicators for foreign trade employing a cut-off survey
Wage setting, taxes and demand for labour: Multivariate analysis of the cointegration relations
Price setting behavior in an open economy and the determination of Finnish foreign trade prices
Output gaps and cyclical indicators: Finnish evidence
An analysis of the embedded frequency content of macroeconomic indicators and their counterparts using the Hilbert-Huang transform
Indicators of the cyclically adjusted budget balance: The Bank of Finland's experience
Leading indicators of systemic banking crises: Finland in a panel of EU countries
Predicting rating changes for banks: How accurate are accounting and stock market indicators?
Buffer funding of unemployment insurance in a dynamic labour union model
Inflation targeting: analyzing indicators of inflation in Finland
Standard setting and competition in securities settlement
Leading inflation indicators in Finland: pairwise analysis of Granger-causality and cointegration
Compilation of early warning indicators for foreign trade employing a cut-off survey
Wage setting, taxes and demand for labour: Multivariate analysis of the cointegration relations
Price setting behavior in an open economy and the determination of Finnish foreign trade prices
Output gaps and cyclical indicators: Finnish evidence
An analysis of the embedded frequency content of macroeconomic indicators and their counterparts using the Hilbert-Huang transform
Indicators of the cyclically adjusted budget balance: The Bank of Finland's experience
Leading indicators of systemic banking crises: Finland in a panel of EU countries