Scant use of capital buffers during the pandemic: Potential stigma effect

Scant use of capital buffers during the pandemic: Potential stigma effect

Fecha: septiembre 2021

Javier Restoy and Ángel Berges

Capital Buffers

SEFO, Spanish and International Economic & Financial Outlook, V. 10 N.º 5 (september 2021)

In order to alleviate the pressure wrought by COVID-19 on the banking sector, regulators and supervisors permitted banks to utilise capital buffers prescribed under Basel III, including the so-called counter-cyclical buffer and the capital conservation buffer. Econometric analysis shows that the 'stigma effect' most likely explains banks' hesitancy to take advantage of this flexibility.

Descargar artículo (formato PDF)

Funcas

Think tank dedicado a la investigación económica y social

Contacto
C/ Caballero de Gracia, 28 | 28013 Madrid, España
+34 91 596 57 18 | funcas@funcas.es
Síguenos
Send this to a friend