Germany announces cut to its countercyclical buffer to 0% from 0.25%
- Cut to countercylical buffer will go into effect on 1 April
- Should remain at 0% until at least the end of 2020
- New regulations would give German banks a capital boost of more than €5 billion
- Says that there are no liquidity bottlenecks in the banking system
It is a good move to shore up the banking and financial system, but again this needs to be accompanied by fiscal measures to really see its true effect.
