Capital Conservation Buffer: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Amend link.) |
imported>Doug Williamson (Layout.) |
||
| Line 11: | Line 11: | ||
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'.) | (Capital Conservation Buffer is sometimes abbreviated to 'CCoB'.) | ||
Revision as of 16:56, 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'.)
