See ESRB (2019) Recommendation on medium-term vulnerabilities in the real estate sector in Denmark, Official Journal of the European Union, 2019/C 366/02 and IMF (2019) Article IV Consultation: Denmark, IMF Country Report, No. 19/178. Page 15 of 23  The purpose of the CCyB is to prevent a negative impact on the real economy when the financial system is under stress.
The buffer has to be built up when systemic risks increase and before financial imbalances grow too large, making the financial sector vulnerable to negative shocks. The buffer has to be released if stress occurs in the financial system and there is a risk of severe tightening of lending to households and firms.