On September 2, 2014, the European Systemic Risk Board (“ESRB”) recommendations for setting countercyclical buffer rates (“CBRs”) were published in the Official Journal of the European Union. The ESRB guidance consists of a set of principles and recommendations that national authorities are expected to follow when setting CBR rates, as well as guidance on the measurement and calculation of the credit-to-GDP gap, calculation of the benchmark buffer rate and the buffer guide, variables that indicate the build-up of system-wide risk associated with periods of excessive credit growth and variables that indicate that the buffer should be maintained, reduced or fully released.

The recommended measures will apply from the date on which a member state requires credit institutions in their jurisdiction to maintain an institution-specific CRB in accordance with the Capital Requirements Directive. National authorities are to report to the ESRB, the Council of the EU and the European Commission by June 30, 2016 on the measures they have taken to comply with the recommendation.

The recommendations are available at:

http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014Y0902(01)&from=EN.