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Compound Growth

Jurisdictional Countercyclical Capital Buffer Rates Information

Jurisdictional CCyB Rates  Information: BCBS Update

November 2019

Last month (on 14th October 2019), the Basel Committee on Banking Supervision (BCBS) updated its information regarding Jurisdictional l Capital Buffer (CCyB) rates that are in force.

The updated content on the BCBS website comprised of confirmations of CCyB policy rates as well as notice of increases and a decrease as follows:

• Hong Kong: a reduction of the CCyB from 2.50% to 2.0% effective 14 October 2019;
• Netherlands: confirmation of CCyB of 0.00%
• Russia: confirmation of CCyB of 0.00%
• Spain: confirmation of CCyB of 0.00%
• United Kingdom: confirmation of CCyB of 1.00%
• Belgium: confirmation of an increase to CCyB of 0.50% from 1 July 2020
• Luxembourg: confirmation of an increase to CCyB of 0.25% from 1 January 2020

Countercyclical capital buffer rates

The Countercyclical Capital Buffer is an amount of capital a firm will have to set aside in relation to a firm's exposure in other jurisdictions, the aim of which is to avoid a breach of minimum capital requirements. It is often shortened in reference to CCyB.

The current CCyB of the UK is 1%. This means that banks are required to have an additional cushion of capital with which to absorb potential losses, enhancing their resilience and contributing to a stable financial system.

The requirement for Countercyclical Capital Buffer and a number of the associated consequences will not only apply to Banks, but also to some Investment Firms subject to IFPRU.

Capital Requirements Support for Firms:

If your firms should require any support or assistance in calculating your minimum capital requirement or any aspect of your COREP reporting requirements, our dedicated support team would be happy to hear from you.

Help with COREP Reporting:

Since the CRD IV Regulations were implemented in 2014, we have been heavily involved in assisting a variety of firms with their COREP reporting requirements and have therefore garnered significant experience in helping firms easily adopt the new reporting framework.  

If you would like assistance with your firm’s requirements under CRD IV or with any of your regulatory reporting such as COREP, then get in touch or email corep@compoundgrowth.co.uk and we’d be happy to discuss how we can support you.             

In addition, we offer a dedicated COREP Support website that provides a knowledge base for COREP Reporting as well as COREP support, COREP FAQs and a glossary of information for those firms that wish to find out more about Common Reporting Requirements.

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