Question

Which of the below statements about the Capital Conservation Buffer (CCB) is NOT correct? The CCB: a. Is 2.5% of banks' risk weighted assets (RWA). b. Must be comprised of

common equity tier one (CET1)capital. c. First appeared in the Basel I| Accord. d. Must be full if the bank wishes to pay dividends or undertake buybacks. e. Is designed to be a buffer against losses.

Fig: 1

Fig: 2