Capital Conservation Buffer

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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