Description

This paper analyzes the use of the countercyclical capital buffer (CCyB) in the banking sector as a macroprudential tool in the world and discusses some alternatives to be taken in the near future in Chile. Although there is still little evidence of its implementation at the global level, the effects of CCR in conjunction with other policies are perceived as positive by the different authorities and the incipient but growing empirical evidence. The paper concludes by presenting an analysis of recent developments in the credit cycle, credit risk, policy challenges, and developments to address in the future.