# capital conservation buffer (CCoB)

- Canonical URL: https://www.gerhardmerk.de/capital-conservation-buffer-ccob
- Post ID: 604346
- Modified: 2026-08-25T12:54:09+00:00
- Language: en

## Definition

Under CRD IV, banks must maintain a capital conservation buffer consisting of Common Equity Tier 1 capital. Set at as much as 2.5% of risk-weighted exposures, this reserve is built up in ordinary times so that institutions have additional capacity to absorb losses during financial downturns.

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