Capital conservation buffer

Under Basel III, from 2016 banks must hold a special buffer to absorb any losses that may occur in times of stress. This must consist of hard core capital; however, in times of crisis, the buffer may exceptionally be undercut. The capital conservation buffer will initially amount to 0.625 percent of assets and will be gradually increased to 2.5 percent by 2019. – See asset reduction, contingent loss, capital buffer, countercyclical, capital planning, liquidity risk management, buffer, countercyclical, risk-bearing capacity, cyclicality.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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