Capital conservation buffer

The capital conservation buffer (CCoB) allows credit institutions to absorb losses during periods of stress to avoid breaches of the minimum Common Equity Tier 1 (CET1) capital requirement amounting to 4.5% of their total risk exposure amount. 

It is a static (non-releasable) capital buffer fixed at the same level for all European Union (EU) Member States in line with the standards of the international Basel III framework. It consists of CET1 capital and amounts to 2.5% of a credit institution’s total risk exposure amount. If a credit institution’s capital conservation buffer falls below 2.5%, it is subject to restrictions on distributions of dividends, bonus payments and payments on Additional Tier 1 (AT1) instruments.  

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