December 1, 2017 / 3:13 PM / 10 months ago

Federal Reserve holds Countercyclical Capital Buffer at 0 percent

WASHINGTON (Reuters) - The Federal Reserve on Friday said it was holding the Countercyclical Capital Buffer (CCyB) at the current level of 0 percent as the central bank decided not to demand more capital from banks under the rule.

FILE PHOTO: The Federal Reserve headquarters in Washington September 16 2015. REUTERS/Kevin Lamarque/File Photo

With the CCyB, regulators can demand that banks hold more of their wealth as capital to brace against a future economic shock. Bank regulators may take such a measure, the Fed said, if it sees “an elevated risk of above-normal future losses.”

Reporting By Patrick RuckerEditing by Chizu Nomiyama

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