Kapitalbuffrar

Kapitalbuffrar, often translated as capital buffers, are a key concept in financial regulation, particularly for banks and other financial institutions. They represent a layer of capital held above the minimum regulatory requirements. The primary purpose of these buffers is to absorb unexpected losses during periods of financial stress or economic downturns, thereby increasing the resilience of the financial system.

There are several types of capital buffers. The most common include the Common Equity Tier 1 (CET1) buffer, which is the highest quality capital, and the capital conservation buffer. The latter is designed to ensure that banks build up capital during good times, which can then be drawn down to absorb losses during bad times. Additionally, there are macroprudential buffers, such as the countercyclical capital buffer (CCyB), which can be increased by regulators when credit growth is deemed excessive and the systemic risk is rising, and then released when credit growth slows.

The implementation of capital buffers is a crucial element of post-financial crisis reforms aimed at preventing systemic failures. By requiring institutions to hold more and higher-quality capital, regulators aim to make banks more robust and less likely to require taxpayer-funded bailouts. The size and type of capital buffers are determined by regulatory frameworks, such as Basel III, which are implemented by national authorities. These buffers are subject to strict rules regarding their composition and how they can be deployed.