Fed finalises rules for countercyclical capital buffer
US central bank promises it will only adjust the buffer gradually
The Federal Reserve outlined its approach to setting the countercyclical capital buffer (CCyB) on September 8, offering assurances it would wield the tool only cautiously.
The CCyB is a macro-prudential tool specifying an additional capital buffer that can be raised as stress builds in the financial sector, to help increase the system's resilience. The Fed also hopes it will smooth the supply of credit over time.
The Fed received just two comments on its proposed policy, which it unveiled in
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