Glossary

Updated 23 September 2018

This glossary offers definitions of technical terms commonly used in the BIS Quarterly Review.

The glossary is also available as a PDF file in ChineseFrench, German, Italian and Spanish.

countercyclical capital buffer (CCyB)

The countercyclical capital buffer aims to ensure that capital requirements take account of the macro-financial environment in which banks operate. Its primary objective is to use a buffer of capital to achieve the broader macroprudential goal of protecting the banking sector from periods of excess aggregate credit growth that have often been associated with the build-up of system-wide risk. Under the Basel III supervisory framework, it is calculated as the weighted average of the buffers in effect in the jurisdictions to which banks have a credit exposure.

Updated: 11 Dec 2016
countercyclical capital buffer (CCyB)

The countercyclical capital buffer aims to ensure that capital requirements take account of the macro-financial environment in which banks operate. Its primary objective is to use a buffer of capital to achieve the broader macroprudential goal of protecting the banking sector from periods of excess aggregate credit growth that have often been associated with the build-up of system-wide risk. Under the Basel III supervisory framework, it is calculated as the weighted average of the buffers in effect in the jurisdictions to which banks have a credit exposure.

Updated: 11 Dec 2016