Capital Conservation Buffer: Difference between revisions
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imported>Doug Williamson (Expand. Source: http://www.bankofengland.co.uk/pra/Documents/publications/reports/prastatement0316.pdf) |
imported>Doug Williamson (Amend link.) |
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== See also == | == See also == | ||
* [[Basel III]] | * [[Basel III]] | ||
* [[Capital adequacy]] | * [[Capital adequacy]] | ||
* [[Capital buffer]] | |||
* [[Countercyclical buffer]] | * [[Countercyclical buffer]] | ||
* [[CRD IV]] | * [[CRD IV]] | ||
Revision as of 11:51, 11 November 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'.)
