## Rethinking Macroprudential Capital Buffers

_Departmental Papers, November 20, 2025_

## Source details

**Canonical URL:** [Rethinking Macroprudential Capital Buffers](https://www.imf.org/en/publications/departmental-papers/issues/2025/11/20/rethinking-macroprudential-capital-buffers-557086)

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## Bibliographic details
- Authors: Paavo A Miettinen, Erlend Nier
- Published: November 20, 2025
- Series: Departmental Papers
- DOI: https://doi.org/10.5089/9798400292859.087

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### Overview and main finding
- 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:
  - when, and to what levels, buffers should be built;
  - when they should be released; and
  - how a release should be communicated to support the supply of credit to the economy.

### Analysis themes and considerations
- Operational questions examined:
  - Timing and calibration of buffer build-up.
  - Triggers and timing for buffer release.
  - Communication strategies to ensure releases support bank lending.
- The paper emphasizes applicability for both advanced and emerging economies.

### Complementary mechanisms to address procyclicality
- The paper examines mechanisms that complement releasable capital buffers to address procyclicality in banks’ loan supply, including:
  - buffers that protect against sectoral risks;
  - bank-specific buffers based on stress tests; and
  - provisioning requirements.

### Publication and metadata
- 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

*Departmental Paper No 2025/008 — "Rethinking Macroprudential Capital Buffers" (Paavo A Miettinen, Erlend Nier), November 20, 2025.*

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## Content in this bundle

- **Rethinking Macroprudential Capital Buffers; Departmental Paper No. 25/08; November 2025**
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  - [Rethinking Macroprudential Capital Buffers; Departmental Paper No. 25/08; November 2025 (PDF)](/-/media/files/publications/dp/2025/english/rmcbea.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/departmental-papers/issues/2025/11/20/rethinking-macroprudential-capital-buffers-557086_