Countercyclical Capital Buffer

Current CCyB rate on Irish exposures: 1% (in effect since 5 July 2019)

Download the CCyB Rate Announcement December 2019

The Countercyclical Capital Buffer (CCyB) is a time varying capital requirement which applies to banks and investment firms. It aims to promote a sustainable provision of credit to the economy by making the banking system more resilient and less pro-cyclical.

By increasing regulatory capital requirements in line with the cyclical systemic risk environment, the CCyB looks to ensure additional capital is in place to absorb losses when risks materialise. In addition, the release of the CCyB during a downturn looks to limit the potential that regulatory capital requirements act as an impediment to the supply of credit to the economy.

The Central Bank is the designated authority for setting the CCyB rate in Ireland and as such sets the rate for Irish exposures on a quarterly basis. Within the Single Supervisory Mechanism the ECB assesses the CCyB decisions of national authorities and if necessary has the power to set a higher rate. As such, the CCyB rate set by the Central Bank is done so having consulted with the ECB.

Relevant Documents

See also

Current CCyB Rates Set in Europe

Material Third Countries for the Irish Banking System

2019 Review: List of Material Third Countries

  • United States of America

About Material Third Countries

In line with ESRB Recommendation 2015/1 (PDF), the Central Bank identifies on an annual basis those third countries (i.e. non EEA countries) to which the Irish banking system has a material exposure.

The assessment draws on quantitative indicators of the geographic distribution of the exposures of Irish authorised credit institutions.