Capital Conservation Buffer and Private debt: Difference between pages

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(CCB).
''Debt - non-bank lending - private markets.''


The Capital Conservation Buffer is a macroprudential [[capital adequacy]] requirement for all banks to build up an additional loss-absorbing capital cushion to improve their resilience to stresses.  
Private debt is a loan to a business that is originated by a lender other than a bank or other traditional financial institution, and is not tradable in a public market.


Private debt is also sometimes known as ''direct lending'', ''alternative lending'', ''non-bank lending'' or ''private credit''.


The idea is for banks to build up the loss-absorbing cushions outside periods of stress, to be drawn down if losses are incurred in the future.


== See also ==
* [[Debt]]
* [[Private]]
* [[Private bond]]
* [[Private credit]]
* [[Private equity]]


Under Basel III the CCB is 2.5% of risk weighted assets.


==Other resources==
*[https://acc.aima.org/about-acc/about-private-credit.html Alternative Credit Council (ACC) - Private credit explained]
*[https://acc.aima.org/research/borrower-s-guide-to-private-credit.html Borrower's guide to private credit - UK edition - Alternative Credit Council]


(Capital Conservation Buffer is sometimes abbreviated to 'CCoB'.)
[[Category:Financial_products_and_markets]]


 
[[Category:Financial_products_and_markets]]
== See also ==
* [[Basel III]]
* [[Capital adequacy]]
* [[Capital buffer]]
* [[Countercyclical buffer]]
* [[CRD IV]]
* [[Macroprudential]]
* [[Stress]]
* [[Total Loss Absorbing Capacity]]

Latest revision as of 21:39, 4 June 2024

Debt - non-bank lending - private markets.

Private debt is a loan to a business that is originated by a lender other than a bank or other traditional financial institution, and is not tradable in a public market.

Private debt is also sometimes known as direct lending, alternative lending, non-bank lending or private credit.


See also


Other resources

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