{"id":7394,"date":"2020-04-03T19:53:42","date_gmt":"2020-04-03T14:23:42","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=7394"},"modified":"2020-04-03T19:53:42","modified_gmt":"2020-04-03T14:23:42","slug":"countercyclical-capital-buffers","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/countercyclical-capital-buffers\/","title":{"rendered":"Countercyclical capital buffers"},"content":{"rendered":"<section class=\"hero-section\" data-type=\"type-1\" data-alignment=\"left\">\n<header class=\"entry-header\"><span style=\"color: #0000ff;\"><strong>Relevance: Prelims: Economy<\/strong><\/span><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/theindustryspread.com\/wp-content\/uploads\/2019\/03\/CC.jpg\" alt=\"Norges Bank : Advice on the countercyclical capital buffer 2019 Q1\" \/><\/p>\n<p><strong>Why in news?<\/strong><\/p>\n<\/header>\n<\/section>\n<div class=\"entry-content\">\n<p>\u2022 The Reserve Bank of India (RBI) announced that banks don\u2019t need to activate countercyclical capital buffers (CCyB) for one more year, which means the banks can utilize the capital earmarked for the buffer.<\/p>\n<p><b>About:<\/b><\/p>\n<p>\u2022 The framework on countercyclical capital buffer (CCyB) was put in place by the RBI in terms of guidelines issued in 2015 wherein it was advised that the CCyB would be activated as and when the circumstances warranted.<\/p>\n<p>\u2022 The framework envisages the credit-to-GDP gap as the main indicator, which is used in conjunction with other supplementary indicators.<\/p>\n<p>\u2022 It requires banks to build up a buffer of capital in good times, which may be used to maintain flow of credit to the real sector in difficult times.<\/p>\n<p>\u2022 The buffer was also meant to restrict the banking sector from indiscriminate lending in the periods of excess credit growth, which have often been associated with the building up of system-wide risk.<\/p>\n<p>\u2022 Based on the review and empirical analysis of CCyB indicators, it has been decided that it is not necessary to activate CCyB for a period of one year or earlier, as may be necessary.<\/p>\n<p><span style=\"color: #0000ff;\"><strong>For more such notes, Articles, News &amp; Views Join our Telegram Channel.<\/strong><\/span><\/p>\n<p><span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" title=\"Telegram Link\" href=\"https:\/\/t.me\/triumphias\" target=\"_blank\"><strong>https:\/\/t.me\/triumphias<\/strong><\/a><\/span><\/p>\n<p><strong><span style=\"color: #0000ff;\">Click the link below to see the details about the UPSC \u2013Civils courses offered by Triumph IAS. <\/span><span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" title=\"Courses available\" href=\"https:\/\/triumphias.com\/pages-all-courses.php\">https:\/\/triumphias.com\/pages-all-courses.php<\/a><\/span><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Relevance: Prelims: Economy Why in news? \u2022 The Reserve Bank of India (RBI) announced that banks don\u2019t need to activate<\/p>\n","protected":false},"author":1,"featured_media":7214,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[123],"tags":[392],"class_list":["post-7394","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","tag-union-public-service-commission-upsc"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/7394","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=7394"}],"version-history":[{"count":1,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/7394\/revisions"}],"predecessor-version":[{"id":7395,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/7394\/revisions\/7395"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/7214"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=7394"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=7394"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=7394"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}