Neither households nor corporations, however, are likely to view their own financial activities in that manner. Surely, for defined-benefit pensions, it is the benefit payments to retirees rather than the employer inflows into the pension sector that individuals perceive as personal income.
When faced with an increase in a specific sectoral risk, relating for instance to real-estate loans, a national MAP authority could force banks to hold more capital by a) raising the overall capital requirement, b) creating an ad hoc buffer on real-estate exposures (although presently this is not allowed under the CRDIV/CRR), or c) increasing the risk weights.