Capital Conservation Buffer: Difference between revisions
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imported>Doug Williamson (Remove reference to phase in period.) |
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* [[Stress]] | * [[Stress]] | ||
* [[Total Loss Absorbing Capacity]] | * [[Total Loss Absorbing Capacity]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
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Revision as of 18:02, 27 June 2022
(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.
(Capital Conservation Buffer is sometimes abbreviated to 'CCoB'.)
