Systemic Risk Buffer: Difference between revisions

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imported>Doug Williamson
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''Bank supervision''.
''Bank supervision''


(SRB).
(SRB).
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==See also==
==See also==
* [[Buffer]]
* [[Capital adequacy]]
* [[Capital adequacy]]
* [[Capital buffer]]
* [[Capital buffer]]
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* [[Resolution]]
* [[Resolution]]
* [[Single Resolution Board]]
* [[Single Resolution Board]]
* [[SRB]]
* [[Systemic risk]]

Revision as of 11:33, 16 November 2016

Bank supervision

(SRB).

The systemic risk buffer is an additional capital buffer required of very large financial firms in the European Union under CRD IV, to be implemented in the UK with effect from 2019.


The aim of the SRB is to raise the capacity of ring-fenced banks and large building societies to withstand stress, thereby increasing their resilience.

This reflects the additional damage these firms could cause to the economy if they were close to failure.


The size of a firm’s SRB is designed to reflect the relative costs to the economy if the firm fell into distress.


See also