ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 19 April. Click Here for more information.
ForumIAS Answer Writing Focus Group (AWFG) for Mains 2024 commencing from 24th June 2024. The Entrance Test for the program will be held on 28th April 2024 at 9 AM. To know more about the program visit: https://forumias.com/blog/awfg2024
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
