 "By definition, CCB is something that is done when times are good. The Indian banking system has hardly been in a good state over the past few years.")
A major decision taken at the recent Reserve Bank of India board meeting was to push back the deadline for banks to set aside an additional 0.625 per cent as capital conservation buffer, required under the Basel III norms, by a year to enable them to lend more. Anup Roy explains the implications.
What is capital conservation buffer (CCB) and why is it important?
CCB is a relatively new concept, introduced under the international Basel III norms, which says that during good times, banks must build up a capital buffer that can be drawn from when there is stress. In simple terms,
