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BASEL III BUFFERS, LIQUIDITY RATIOS, LEVERAGE RATIO
What is the Capital Conservation Buffer (CCB) under Basel III and what is its prescribed level?
The CCB is an additional layer of common equity tier-1 capital held above the minimum requirement to absorb losses during periods of stress, prescribed at 2.5% of risk-weighted assets.
What is the minimum Capital Conservation Buffer (CCB) a bank must maintain above minimum CET1?
2.5% of Risk Weighted Assets
What happens to a bank's dividend and bonus distributions when its capital falls into the CCB range?
When a bank's capital falls within the CCB range, restrictions are placed on profit distributions including dividends, share buybacks, and discretionary staff bonuses, with stricter restrictions applying the deeper the breach.
What is the prescribed minimum Countercyclical Capital Buffer range under Basel III?
0% to 2.5% of Risk Weighted Assets
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