{
  "title": "Rethinking Macroprudential Capital Buffers",
  "publication": "Departmental Papers, November 20, 2025",
  "sourceUrl": "https://www.imf.org/en/publications/departmental-papers/issues/2025/11/20/rethinking-macroprudential-capital-buffers-557086",
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  "summary": "Growing experience since the global financial crisis suggests that there is benefit to both advanced and emerging economies from having releasable capital buffers.",
  "sections": [
    {
      "heading": "Overview and main finding",
      "content": "- Growing experience since the global financial crisis suggests that there is benefit to both advanced and emerging economies from having releasable capital buffers.\n- Building such buffers in normal times enables policymakers to support lending in the face of shocks irrespective of whether stress was preceded by excessive credit growth.\n- The paper explores key issues arising in operating a releasable-capital-buffer framework, including:\n  - when, and to what levels, buffers should be built;\n  - when they should be released; and\n  - how a release should be communicated to support the supply of credit to the economy."
    },
    {
      "heading": "Analysis themes and considerations",
      "content": "- Operational questions examined:\n  - Timing and calibration of buffer build-up.\n  - Triggers and timing for buffer release.\n  - Communication strategies to ensure releases support bank lending.\n- The paper emphasizes applicability for both advanced and emerging economies."
    },
    {
      "heading": "Complementary mechanisms to address procyclicality",
      "content": "- The paper examines mechanisms that complement releasable capital buffers to address procyclicality in banks’ loan supply, including:\n  - buffers that protect against sectoral risks;\n  - bank-specific buffers based on stress tests; and\n  - provisioning requirements."
    },
    {
      "heading": "Publication and metadata",
      "content": "- Authors: Paavo A Miettinen, Erlend Nier\n- Date: November 20, 2025\n- Series: Departmental Paper No 2025/008\n- Issue: 008\n- Volume: 2025\n- Pages: 50\n- DOI: https://doi.org/10.5089/9798400292859.087\n- ISBN: 9798400292859\n- ISSN: 2616-5333\n- Subjects: Countercyclical capital buffers, Credit, Financial institutions, Financial regulation and supervision, Financial sector policy and analysis, Loans, Macroprudential Policy, Money\n- Keywords: buffer component, buffer requirement, capital conservation, capital requirements, conservation buffer, countercyclical capital buffer, Countercyclical Capital Buffers, Credit, Global, Loans, Macroprudential Policy, Releasable Capital, releasable capital buffer\n\nDepartmental Paper No 2025/008 — \"Rethinking Macroprudential Capital Buffers\" (Paavo A Miettinen, Erlend Nier), November 20, 2025.\n\n---\n\n Content in this bundle\n\n- Rethinking Macroprudential Capital Buffers; Departmental Paper No. 25/08; November 2025\n  - Rethinking Macroprudential Capital Buffers; Departmental Paper No. 25/08; November 2025 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Rethinking Macroprudential Capital Buffers; Departmental Paper No. 25/08; November 2025 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/departmental-papers/issues/2025/11/20/rethinking-macroprudential-capital-buffers-557086"
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    "Authors: Paavo A Miettinen, Erlend Nier",
    "Published: November 20, 2025",
    "Series: Departmental Papers",
    "DOI: https://doi.org/10.5089/9798400292859.087",
    "Growing experience since the global financial crisis suggests that there is benefit to both advanced and emerging economies from having releasable capital buffers.",
    "Building such buffers in normal times enables policymakers to support lending in the face of shocks irrespective of whether stress was preceded by excessive credit growth.",
    "The paper explores key issues arising in operating a releasable-capital-buffer framework, including:",
    "Operational questions examined:",
    "The paper emphasizes applicability for both advanced and emerging economies.",
    "The paper examines mechanisms that complement releasable capital buffers to address procyclicality in banks’ loan supply, including:",
    "Authors: Paavo A Miettinen, Erlend Nier",
    "Date: November 20, 2025",
    "Series: Departmental Paper No 2025/008",
    "Issue: 008",
    "Volume: 2025",
    "Pages: 50",
    "DOI: https://doi.org/10.5089/9798400292859.087",
    "ISBN: 9798400292859",
    "ISSN: 2616-5333",
    "Subjects: Countercyclical capital buffers, Credit, Financial institutions, Financial regulation and supervision, Financial sector policy and analysis, Loans, Macroprudential Policy, Money",
    "Keywords: buffer component, buffer requirement, capital conservation, capital requirements, conservation buffer, countercyclical capital buffer, Countercyclical Capital Buffers, Credit, Global, Loans, Macroprudential Policy, Releasable Capital, releasable capital buffer",
    "**Rethinking Macroprudential Capital Buffers; Departmental Paper No. 25/08; November 2025**"
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