BaFin Introduces Countercyclical and Sectoral Systemic Risk Buffer
DBRS Morningstar has released a commentary on the German residential real estate market.Key highlights include:
• On 31 January 2022 the German banking regulator, BaFin, announced a 0.75% countercyclical buffer (CCyB) on all domestic risk-weighted assets (RWA) starting on 1 February 2022 to be fully implemented by 1 February 2023.
• On 12 January 2022 the BaFin also announced its intention to introduce a 2.0% sectoral systemic risk buffer (sSyRB) on RWAs related to loans collateralised by residential real estate to be phased in starting on 1 April 2022.
• Similar to other countries, the price increase for residential real estate prices in Germany measured on an absolute as well as a relative basis has been significant.
“DBRS Morningstar considers the introduction of the buffers to be a precautionary measure. However, at this point we do not see mortgage loan books representing a major risk to the banking system, as the debt-service capacity has remained intact due to the low interest rate level and the relatively stable level of household debt as a percentage of GDP and disposable income” said Sonja Förster, Vice President, Global Financial Institutions at DBRS Morningstar.
DBRS Morningstar is a global credit ratings business with 700 employees in eight offices globally. DBRS and Morningstar Credit Ratings are committed to empowering investor success, serving the market through leading-edge technology and raising the bar for the industry.
Together, we are the world’s fourth largest credit ratings agency and a market leader in Canada, the U.S. and Europe in multiple asset classes. We rate more than 2,600 issuers and 54,000 securities worldwide and are driven to bring more clarity, diversity and responsiveness to the ratings process. Our approach and size provide the agility to respond to customers’ needs, while being large enough to provide the necessary expertise and resources. For more details visit us at dbrs.com.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.