Measures to mitigate macroprudential or systemic risk
In exceptional cases, if the Financial Stability Committee has identified changes in the intensity of the macroprudential or systemic risk with the potential to have serious negative consequences for the domestic financial system and the real economy in Germany, BaFin can take further macroprudential measures in addition to the capital buffer requirements (section 48t of the Banking Act). These measures are subject to strict conditions and are only permitted on the Financial Stability Committee’s request.
- raising own funds requirements
- disclosure requirements
- liquidity requirements
- large exposure requirements and
- risk weightings for certain exposure classes
- section 48t of the Banking Act also provides an option to increase the capital conservation buffer
At the European level, the procedure to be followed is specified in Article 458 of the CRR.