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. 2021;101(3):207-212.
doi: 10.1007/s10273-021-2875-8. Epub 2021 Mar 17.

[Are Equity Buffers Effective During the Eonomic Downturn?]

[Article in German]
Franziska Bremus  1 , Lukas Menkhoff  2
Affiliations

[Are Equity Buffers Effective During the Eonomic Downturn?]

[Article in German]
Franziska Bremus et al. Wirtschaftsdienst. 2021.

Abstract
in English, German

Additional "capital buffers", such as the countercyclical capital buffer, were introduced after the 2008/09 crisis. These buffers were requested in addition to banks' minimum capital requirements. They should be built up during good times and can be used during bad times. While buffer requirements were reduced quickly in the spring of 2020, financial institutions have been reluctant to use the additional leeway as they may fear market stigma effects if capital ratios fall and they might abstain from new loans due to high uncertainty. The article argues in favor of a more simple and transparent organisation of macroprudential regulation as measures to raise the effectiveness of capital buffers, especially during a downturn.

Der antizyklische Kapitalpuffer und der Kapitalerhaltungspuffer wurden für die Verstetigung der Kreditvergabe sowie eine höhere Resilienz des Finanzsystems geschaffen. Fraglich bleibt, wie gut diese Puffer speziell im Abschwung in der Praxis von den Finanzinstituten genutzt werden. Dem Signalisierungsproblem zufolge könnte eine sinkende Eigenkapitalquote als positives (Fähigkeit zu Neugeschäften) aber auch negatives Zeichen (geringere Stabilität) gedeutet werden. Hinzu kommt das Unsicherheitsproblem, bei dem Kreditinstitute freigesetztes Eigenkapital in unsicheren Zeiten nicht für zusätzliches Kreditgeschäft nutzen.

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