As the German banking system could intensify an unexpected economic slump by scaling back its lending, the Bundesbank pointed to a need for macroprudential action in its Financial Stability Review of 2018.
At the same time, the German Financial Stability Committee discussed which instruments were appropriate to address these risks – among them was the countercyclical capital buffer. [11]  3 The CCyB is the appropriate instrument to address cyclical systemic risks.