ForumIAS LATEST
- 22 July | How AIR 333 Cleared UPSC in the First Attempt | Click Here to Watch →
- 22 July | From 3 Prelims Failures to AIR 125 by Sai Krishna's UPSC Journey | Click Here to Watch →
- 22 July | Basics vs Value Addition: What Matters More in UPSC? | Click Here to Watch →
News: The Reserve Bank of India (RBI) has deferred implementation of countercyclical capital buffers (CCyB). RBI had put in place the framework on countercyclical capital buffer (CCyB) in 2015
Facts:
Capital Buffer:
- Mandatory capital that financial institutions are required to hold.
- They were mandated under the Basel III regulatory reforms, which were implemented following the 2007-2008 financial crisis.
Countercyclical Capital Buffer:
- Capital Buffer that banks need to hold when credit is growing rapidly. This buffer can be reduced if the financial cycle turns down or the economic and financial environment becomes poor
