A Profit-to-Provisioning Approach to Setting the Countercyclical Capital Buffer: The Czech Example

Untitled

“…It includes measures that relate to the credit institutions' skewed views (interest rate margins), but private investors as well (in terms of stock market index-derived measures). Here, research finds that optimism and pessimism changes of economic agents over the financial cycle also affect the build-up of cyclical imbalances (seePfeifer and Hodula, 2018;Drehmann et al, 2010).…”