N0. 36 - Strengthening releasable macroprudential buffers in European Economic Area countries

This note analyses the recent use of the countercyclical capital buffer and the systemic risk buffer in European Economic Area member states. When a crisis occurs, national macroprudential authorities can release these buffers to support the banking system, as was done during the pandemic outbreak in the countries where these buffers had been activated. More and more authorities have decided to increase the use of releasable macroprudential buffers in recent years, taking advantage of the banking system's solid capital position and high profitability. Only four member states, including Italy, have not activated either buffer.