Following the COVID shock, supervisors encouraged banks to use capital buffers to support the recovery. However, banks have been reluctant to do so. Provided th
This paper analyses banks' ability to use capital buffers in the euro area, taking into account overlapping capital requirements between the risk-based capital
Capital buffers are key macroprudential policy instruments. Regulatory capital buffers ("the buffers") were introduced after the global financial crisis to miti
An important role for bank capital is that of a buffer against unexpected losses. As uncertainty about these losses increases, the theory predicts an increase i
The year-long consultations on Basel II mirror the international popularity of capital requirements as a regulatory instrument. Yet, the impact of capital re qu
