讲解

问题如下：

In regard to the capital conservation buffer(CCB),which of the following is true?

选项：

A.

CCB requires that total capital to risk-weightedassets must be 10.5% at all times.

B.

The Tier 1 equity capital that banks are required tokeep in normal times is 7% of risk-weighted assets.

C.

This will vary between zero and 2.5% of risk weightedassets, and is at the discretion of the regulators in individual countries.

D.

Is required only for banks with inadequate liquiditycoverage ratios.

解释：

The capital conservation buffer is meant toprotect banks in times of financial distress. Banks are required to build up abuffer of Tier 1 equity capital equal to 2.5% of risk-weighted assets in normaltimes, which will then be used to cover losses in stress periods. This meansthat in normal times, a bank should have a minimum 7% Tier 1 equity capital torisk-weighted assets ratio, an 8.5% total Tier 1 capital to risk-weightedassets ratio, and a 10.5% Tier 1 plus Tier 2 capital to risk-weighted assets ratio.The capital conservation buffer is a requirement and is not left to thediscretion of individual country regulators. It is not a requirement at alltimes but is built up to that level in normal economic periods and declines instress periods.