Capital Adequacy Directive and Capital Conservation Buffer: Difference between pages
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(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'.) | |||
== See also == | == See also == | ||
* [[Basel | * [[Basel III]] | ||
* [[Capital adequacy]] | * [[Capital adequacy]] | ||
* [[Capital | * [[Capital buffer]] | ||
* [[Countercyclical buffer]] | |||
[[ | * [[CRD IV]] | ||
* [[Macroprudential]] | |||
* [[Stress]] | |||
* [[Total Loss Absorbing Capacity]] | |||
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'.)
