What is the Current UK Countercyclical Capital Buffer Rate?

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11 July 2019

Current UK CCyB Rate

The Financial Planning Committee (FPC) of the Bank of England (BOE) increased the UK Countercyclical Capital Buffer rate (CCyB) from 0.5% to 1% of banks’ UK exposures on 28 November 2018.

Thus the current UK countercyclical capital buffer rate is 1%.

This was the second increase to the CCyB during 2018 after the FPC implemented an increase from 0% to 0.5% on 27 June 2018.

Current UK CCyB Maintained at 1%

The FPC has today confirmed it will be maintaining the Current UK CCyB at 1%, stating:

“The FPC stands ready to move the UK countercyclical capital buffer (CCyB) rate in either direction as economic conditions and the overall risk environment evolve. If a major economic stress were to materialise, the FPC is prepared to cut the UK CCyB rate, as it did in July 2016. In the absence of such a stress, the FPC remains vigilant to developments, particularly in the domestic credit environment.”

Source: FPC 11July 2019

See also:

• Previous FPC UK CCyB announcements & info

The Countercyclical Capital Buffer is capital a firm will have to set aside in relation to jurisdictional exposures

The new capital buffers - the Countercyclical Buffer and the Capital Conservation Buffer - took effect from 1st January 2016

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