Capital Conservation Buffer: Difference between revisions
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imported>Doug Williamson (Expand.) |
imported>Doug Williamson (Expand. Source: http://www.bankofengland.co.uk/pra/Documents/publications/reports/prastatement0316.pdf) |
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The CCB is subject to a 3-year phase in period from 1 January 2016 to 1 January 2019. | The CCB is subject to a 3-year phase in period from 1 January 2016 to 1 January 2019. | ||
(Capital Conservation Buffer is sometimes abbreviated to 'CCoB'.) | |||
Revision as of 14:10, 29 October 2016
(CCB).
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.
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.
Under Basel III the CCB is 2.5% of risk weighted assets.
The CCB is subject to a 3-year phase in period from 1 January 2016 to 1 January 2019.
(Capital Conservation Buffer is sometimes abbreviated to 'CCoB'.)
