Question

    What is 'Countercyclical Capital Buffer'

    (CCyB)? 
    A Capital held to protect against cyber attacks. Correct Answer Incorrect Answer
    B Extra capital banks must hold during periods of high credit growth to be used during downturns. Correct Answer Incorrect Answer
    C Capital held specifically for agricultural loans. Correct Answer Incorrect Answer
    D Capital required for opening new branches. Correct Answer Incorrect Answer
    E None of the above. Correct Answer Incorrect Answer

    Solution

    CCyB is a tool used by regulators to increase capital requirements during economic booms and relax them during recessions.

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