Capital Conservation Buffer

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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.

(Capital Conservation Buffer is sometimes abbreviated to 'CCoB'.)

See also