Answer-What is 'Countercyclical Capital Buffer' (CCyB)?

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

Question

What is 'Countercyclical Capital Buffer'

(CCyB)?

A Capital held to protect against cyber attacks.

B Extra capital banks must hold during periods of high credit growth to be used during downturns.

C Capital held specifically for agricultural loans.

D Capital required for opening new branches.

E None of the above.

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