Countercyclical Capital Buffer
- On 16th April 2025, the Reserve Bank of India (RBI) reviewed the requirement for activating the CCyB and decided against its activation, stating that it is not needed under the current economic conditions.
- Countercyclical Capital Buffer (CCyB) is a regulatory tool designed to ensure that banks maintain additional capital during periods of economic growth, which can be used during downturns to absorb shocks.
- The credit-to-GDP gap is the main indicator used in determining the need for the CCyB, along with other supplementary ....