The countercyclical capital buffer for banks will be held at zero for now, APRA said yesterday.In an annual review of the framework for use of this buffer in setting overall industry target capital levels APR said a zero per cent buffer "remains appropriate at this point in time".APRA said "key features of the systemic risk environment over the past year include low credit growth, a steady risk profile for new housing lending, a move from declining house prices to rising house prices in many locations, and increased operational risk losses. "Past episodes of rapidly rising house prices have often been accompanied by increases in household indebtedness and declining lending standards. Low interest rates may also give banks an incentive to increase the riskiness of their lending."It said it was "carefully monitoring these dynamics, but there is no notable evidence of increased systemic risk that has emerged to date. "The countercyclical capital buffer will be increased if conditions emerge that warrant it. There is also a range of other macroprudential tools that APRA can activate if required."