Release Date: January 29, 2016
For release at 10:00 a.m. EST
The Federal Reserve Board on Friday extended until March 21, 2016 the comment period for the proposed policy statement detailing the framework the Board would follow in setting the Countercyclical Capital Buffer (CCyB).
The CCyB is a macroprudential tool that can be used to increase the resilience of the financial system by raising capital requirements on internationally active banking organizations when there is an elevated risk of above-normal losses in the future. The CCyB would then be available to help banking organizations absorb shocks associated with declining credit conditions. The proposed policy statement provides background on the range of financial system vulnerabilities and other factors the Board could take into account as it evaluates settings for the buffer.
The Board extended the comment period to allow interested persons more time to analyze the issues and prepare their comments. Originally, comments were due by February 19, 2016.
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