December 1, 2017 / 3:13 PM / in a year

Federal Reserve holds Countercyclical Capital Buffer at 0 percent

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

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.

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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