Countercyclical buffer: Difference between revisions

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(CCyB).
(CCyB).
Sometimes written 'CounterCyclical Buffer'.


A macroprudential [[capital adequacy]] requirement for a capital cushion to allow and compensate for procyclical effects.  
A macroprudential [[capital adequacy]] requirement for a capital cushion to allow and compensate for procyclical effects.  
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The rate initially set by the UK's Financial Policy Committee (FPC) for the UK exposures of institutions incorporated in the UK was 0%.
The rate initially set by the UK's Financial Policy Committee (FPC) for the UK exposures of institutions incorporated in the UK was 0%.
Sometimes written 'CounterCyclical Buffer'.




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* [[Macroprudential]]
* [[Macroprudential]]
* [[Total Loss Absorbing Capacity]]
* [[Total Loss Absorbing Capacity]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Manage_risks]]

Latest revision as of 16:08, 24 March 2020

(CCyB).

A macroprudential capital adequacy requirement for a capital cushion to allow and compensate for procyclical effects.

Countercyclical buffers are imposed under Basel III within a range of 0% to 2.5%, subject to national supervisors' determinations.


The idea is that the buffer is:

  • Built up during times when economic conditions are favourable; and
  • Reduced during a downturn, to free up capital.


The rate initially set by the UK's Financial Policy Committee (FPC) for the UK exposures of institutions incorporated in the UK was 0%.


Sometimes written 'CounterCyclical Buffer'.


See also