Capital Conservation Buffer: Difference between revisions

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imported>Doug Williamson
(Expand. Source: BIS http://www.bis.org/bcbs/basel3/basel3_phase_in_arrangements.pdf)
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(CCB).
(CCB).


A macroprudential [[capital adequacy]] requirement for all banks to build up an additional loss-absorbing capital cushion to improve their resilience to stresses.  
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.
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 III]]
* [[Basel III]]
* [[Buffer]]
* [[Capital adequacy]]
* [[Capital adequacy]]
* [[Capital buffer]]
* [[Capital conservation]]
* [[Capital maintenance]]
* [[Countercyclical buffer]]
* [[Countercyclical buffer]]
* [[CRD IV]]
* [[CRD IV]]
* [[Macroprudential]]
* [[Macroprudential]]
* [[Stress]]
* [[Total Loss Absorbing Capacity]]
* [[Total Loss Absorbing Capacity]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]

Latest revision as of 23:40, 29 January 2024

(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'.)


See also