9. Capital Buffer
| No: 341000015689 | Date(g): 19/12/2012 | Date(h): 6/2/1434 | Status: In-Force |
| Basel III Framework proposes two type of Capital buffers. | ||
| 1. | Capital conservation buffer | |
| 2. | Countercyclical buffer | |
| This section outlines the operation of the capital conservation buffer, which is designed to ensure that banks build up capital buffers outside periods of stress which can be drawn down as losses are incurred. The requirement is based on simple capital conservation rules designed to avoid breaches of minimum capital requirements. | ||