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Finance & Banking vocabulary · Regulation & Compliance

Countercyclical capital buffer

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, countercyclical capital buffer means: An additional capital buffer adjusted to address changing system-wide risks associated with the credit cycle.

In Turkish: döngüsel sermaye tamponu

How it is used

Often abbreviated CCyB; specify the relevant authority and period rather than assuming one global rate.

Example sentences

  1. The authority increased the countercyclical capital buffer as credit vulnerabilities grew.

    The buffer responds to a buildup of system-wide risk.

  2. Releasing the countercyclical capital buffer gave banks room to absorb losses.

    The requirement can be reduced when accumulated resilience is needed.

Common collocations

  • countercyclical capital buffer rate
  • release the CCyB
  • capitalMoney and other financial resources used to start and run a business; for banks, the owners' funds that absorb losses and protect depositors.
  • Basel IIIA set of international banking rules agreed by the Basel Committee after the 2008 global financial crisis. It requires more and better capital and adds liquidity and leverage limits.

More terms: Regulation & Compliance

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This page explains English vocabulary for learners. It is not financial advice.