Kapitalbuffere

Kapitalbuffere, the Norwegian term for capital buffers, are layers of capital above a bank’s minimum capital requirements designed to absorb losses, strengthen resilience, and support lending during stress. They are a key element of Basel III-inspired regulation and are implemented through national law and regulations in many jurisdictions, including the European Union’s CRD/CRR framework. The buffers are intended to reduce procyclicality and to shield financial stability by providing banks with additional capital that can be drawn on in downturns.

The main components typically include:

- Capital conservation buffer (CCB): commonly set at about 2.5% of risk-weighted assets, requiring CET1 capital to be held beyond the minimum ratio.

- Countercyclical capital buffer (CCyB): an adjustable buffer set by national authorities based on domestic credit growth and systemic risk, usually within a range from 0% to 2.5% of risk-weighted assets.

- Systemic risk buffer (SyRB): an additional buffer for banks whose failure could pose heightened systemic risk, potentially up to a few percentage points of risk-weighted assets, depending on national rules.

- Surcharges for globally or domestically important banks (G-SIBs/D-SIBs): extra capital on top of other buffers for banks deemed systemically important.

Banks must meet these buffers in addition to the minimum capital requirements (for example CET1, Tier 1, and total capital ratios). If a bank fails to maintain the required buffers, regulators may restrict distributions, bonuses, or require actions to rebuild capital. The exact levels and applicability of each buffer vary by country and regulator, but the framework follows Basel III principles to strengthen overall financial stability.