{
  "title": "A Building Block Approach for Introducing a Positive Neutral Countercyclical Capital Buffer in Albania",
  "publication": "Selected Issues Papers, December 29, 2025",
  "sourceUrl": "https://www.imf.org/en/publications/selected-issues-papers/issues/2025/12/29/a-building-block-approach-for-introducing-a-positive-neutral-countercyclical-capital-572909",
  "canonical": "https://www.imf.org/en/publications/selected-issues-papers/issues/2025/12/29/a-building-block-approach-for-introducing-a-positive-neutral-countercyclical-capital-572909",
  "overlayPath": "/en/publications/selected-issues-papers/issues/2025/12/29/a-building-block-approach-for-introducing-a-positive-neutral-countercyclical-capital-572909/index.md",
  "summary": "The paper discusses the introduction of a positive neutral countercyclical capital buffer (CCyB) for Albania. The building blocks present a step-by-step guide to assess preconditions to be in place.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Purpose: Discusses introduction of a positive neutral countercyclical capital buffer (CCyB) for Albania using a building block, step-by-step guide to assess preconditions.\n- Application: Applied to the case of Albania; provides a template for emerging markets to explore positive neutral CCyB regimes.\n- Authors: Maximilian Fandl, Giorgia De Nora, Eugena Topi\n- Date: December 29, 2025"
    },
    {
      "heading": "Methods and Analytical Approach",
      "content": "- Building block approach: Step-by-step guide to assess institutional and data preconditions required to implement a positive neutral CCyB.\n- Calibration methods employed:\n  - Quantile local projection.\n  - Stress-test based approach.\n- Scope: Focus on calibration of a positive neutral rate and evaluation of feasibility and net benefits for Albania."
    },
    {
      "heading": "Key Findings",
      "content": "- Feasibility and benefits:\n  - The paper finds a positive neutral CCyB regime is feasible and net beneficial for Albania.\n- Calibrated range:\n  - Identifies the adequate range of the positive neutral rate between 100-200bps.\n- Broader applicability:\n  - Provides a template for emerging markets to explore positive neutral CCyB regimes."
    },
    {
      "heading": "Policy Recommendations and Implications",
      "content": "- Implement a building block assessment to verify preconditions before introducing a positive neutral CCyB.\n- Use a combination of quantile local projection and stress-test based approaches for calibration of the neutral rate.\n- Consider adopting a positive neutral CCyB within the identified range of 100-200bps for Albania, subject to country-specific preconditions and monitoring.\n\n---\n\n Content in this bundle\n\n- Sipea2025154\n  - Sipea2025154 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Sipea2025154 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/selected-issues-papers/issues/2025/12/29/a-building-block-approach-for-introducing-a-positive-neutral-countercyclical-capital-572909"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/selected-issues-papers/issues/2025/12/29/a-building-block-approach-for-introducing-a-positive-neutral-countercyclical-capital-572909/index.md)",
    "[Structured JSON version](/en/publications/selected-issues-papers/issues/2025/12/29/a-building-block-approach-for-introducing-a-positive-neutral-countercyclical-capital-572909/index.json)",
    "[Bundle manifest](/en/publications/selected-issues-papers/issues/2025/12/29/a-building-block-approach-for-introducing-a-positive-neutral-countercyclical-capital-572909/bundle-manifest.json)",
    "Authors: Maximilian Fandl, Giorgia De Nora, Eugena Topi",
    "Published: December 29, 2025",
    "Series: Selected Issues Papers",
    "DOI: https://doi.org/10.5089/9798229035132.018",
    "Purpose: Discusses introduction of a positive neutral countercyclical capital buffer (CCyB) for Albania using a building block, step-by-step guide to assess preconditions.",
    "Application: Applied to the case of Albania; provides a template for emerging markets to explore positive neutral CCyB regimes.",
    "Authors: Maximilian Fandl, Giorgia De Nora, Eugena Topi",
    "Date: December 29, 2025",
    "Building block approach: Step-by-step guide to assess institutional and data preconditions required to implement a positive neutral CCyB.",
    "Calibration methods employed:",
    "Scope: Focus on calibration of a positive neutral rate and evaluation of feasibility and net benefits for Albania.",
    "Feasibility and benefits:",
    "Calibrated range:",
    "Broader applicability:",
    "Implement a building block assessment to verify preconditions before introducing a positive neutral CCyB.",
    "Use a combination of quantile local projection and stress-test based approaches for calibration of the neutral rate.",
    "Consider adopting a positive neutral CCyB within the identified range of 100-200bps for Albania, subject to country-specific preconditions and monitoring.",
    "**Sipea2025154**"
  ],
  "related": [
    {
      "title": "Sipea2025154",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/files/publications/selected-issues-papers/2025/english/sipea2025154.pdf",
      "summary": {
        "path": "/-/media/files/publications/selected-issues-papers/2025/english/sipea2025154.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/files/publications/selected-issues-papers/2025/english/sipea2025154.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/selected-issues-papers/issues/2025/12/29/a-building-block-approach-for-introducing-a-positive-neutral-countercyclical-capital-572909/index.md",
    "json": "/en/publications/selected-issues-papers/issues/2025/12/29/a-building-block-approach-for-introducing-a-positive-neutral-countercyclical-capital-572909/index.json",
    "bundleManifest": "/en/publications/selected-issues-papers/issues/2025/12/29/a-building-block-approach-for-introducing-a-positive-neutral-countercyclical-capital-572909/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-20T21:48:45.890Z"
}