{
  "title": "Key Aspects of Macroprudential Policy - Background Paper",
  "publication": "Policy Papers, June 10, 2013",
  "sourceUrl": "https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/key-aspects-of-macroprudential-policy-background-paper-pp4804",
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  "summary": "The countercyclical capital buffer (CCB) was proposed by the Basel committee to increase the resilience of the banking sector to negative shocks.",
  "sections": [
    {
      "heading": "Summary and Purpose",
      "content": "- The countercyclical capital buffer (CCB) was proposed by the Basel committee to increase the resilience of the banking sector to negative shocks.\n- The interactions between banking sector losses and the real economy highlight the importance of building a capital buffer in periods when systemic risks are rising.\n- The CCB aims to make banks more resilient against imbalances in credit markets and thereby enhance medium-term prospects of the economy."
    },
    {
      "heading": "Framework and Design (Basel III)",
      "content": "- Basel III introduces a framework for a time-varying capital buffer on top of the minimum capital requirement and another time-invariant buffer (the conservation buffer).\n- In good times when system-wide risks are growing, the regulators could impose the CCB which would help the banks to withstand losses in bad times."
    },
    {
      "heading": "Key Observations",
      "content": "- Building capital buffers during periods of rising systemic risk is important because of feedbacks between banking sector losses and the real economy.\n- Time-varying capital requirements (CCB) complement minimum capital requirements and time-invariant conservation buffers under Basel III.\n\n---\n\n Content in this bundle\n\n- Key Aspects of Macroprudential Policy--Background Paper; IMF Policy Paper; June 10, 2013\n  - Key Aspects of Macroprudential Policy--Background Paper; IMF Policy Paper; June 10, 2013 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Key Aspects of Macroprudential Policy--Background Paper; IMF Policy Paper; June 10, 2013 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/key-aspects-of-macroprudential-policy-background-paper-pp4804"
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    "Published: June 10, 2013",
    "Series: Policy Papers",
    "The countercyclical capital buffer (CCB) was proposed by the Basel committee to increase the resilience of the banking sector to negative shocks.",
    "The interactions between banking sector losses and the real economy highlight the importance of building a capital buffer in periods when systemic risks are rising.",
    "The CCB aims to make banks more resilient against imbalances in credit markets and thereby enhance medium-term prospects of the economy.",
    "Basel III introduces a framework for a time-varying capital buffer on top of the minimum capital requirement and another time-invariant buffer (the conservation buffer).",
    "In good times when system-wide risks are growing, the regulators could impose the CCB which would help the banks to withstand losses in bad times.",
    "Building capital buffers during periods of rising systemic risk is important because of feedbacks between banking sector losses and the real economy.",
    "Time-varying capital requirements (CCB) complement minimum capital requirements and time-invariant conservation buffers under Basel III.",
    "**Key Aspects of Macroprudential Policy--Background Paper; IMF Policy Paper; June 10, 2013**"
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