BSP okays capital buffer in times of financial stress 15 SHARES Share it! Share TweetBy Lee C. ChipongianThe Bangko Sentral ng Pilipinas (BSP) has approved the adoption of the counter-cylical capital buffer (CCyB) for all big banks to prevent build-up of systemic risks in times of stress in the financial sector. “During periods of stress, the Monetary Board can lower the CCyB requirement, effectively providing the affected banks with more risk capital to deploy. The BSP has repeatedly noted that the capital buffer will not have any “cost consequence” to the banks as far as raising the minimum required CET 1. The CCyB is for “stressed time” while the capital conservation buffer or CCB at 2.5 percent and approved in 2014, is for normal time.

Source: Manila Bulletin December 14, 2018 13:52 UTC