Asia bankers reject counter-cyclical capital buffer as effective tool for supervision

Counter accusations

bis-tower-basel
BIS Tower: the focus of Asian frustration over the CCB

The principle behind Basel III’s counter-cyclical capital buffer (CCB) is simple: credit grew at too rapid a pace in the run-up to the financial crisis, so the Basel rules include a provision requiring banks to put in an additional capital buffer in economic boom times. Based on factors such as the credit-to-GDP ratio the CCB is intended to give regulators a weapon against pro-cyclicality and a defence against system-wide shocks.

But as with other aspects of the Basel Accord – most notably

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