Capital
Countercyclical Capital Buffer
Also known as CCyB
The Countercyclical Capital Buffer (CCyB) is a macroprudential CET1 add-on that regulators raise during credit booms and release during downturns. The US CCyB has been at 0% since the framework was implemented in 2016.
Formula
The Federal Reserve sets the US CCyB; for banks with international exposures, the effective CCyB is a weighted average of jurisdictional CCyBs based on credit exposure location. The buffer is meant to be raised 12 months in advance of any increase to give banks time to build capital.
Why it matters
The CCyB is the post-2008 macroprudential tool intended to lean against credit cycles. Several jurisdictions (UK, Switzerland, Sweden, Hong Kong) have activated their CCyBs above 0%. The US has not, despite recurring discussion among Federal Reserve governors as credit conditions tighten.
How to interpret
A US bank's CCyB is 0% unless the firm has material exposures in CCyB-positive jurisdictions. Global banks compute a weighted-average CCyB across all their private-sector credit exposures, country by country, and add the result to their CET1 buffer requirement.
Thresholds
| Range | Label | Interpretation |
|---|---|---|
| 0% | US Default | Current US CCyB; no add-on. |
| 0–1% | Activated | Some jurisdictions activated this band. |
| 1–2% | Cycle-late | Activated in extended credit booms. |
| 2–2.5% | Maximum | Framework maximum; rare in practice. |
Worked example
Frequently asked
Has the US ever activated the CCyB?
No. The CCyB has been 0% since the framework took effect in 2016. The Federal Reserve has discussed activation several times but never moved.
Which countries have an active CCyB?
As of 2026, the UK (2.0%), Switzerland, Sweden, Norway, Hong Kong, France, and several others run positive CCyBs. The list updates quarterly via the BIS website.
How is the CCyB different from the capital conservation buffer?
The CCB is fixed at 2.5% and bank-specific; the CCyB is variable, set by regulators in response to credit-cycle conditions, and applies based on the jurisdiction of credit exposure.
Sources
- 12 CFR §217.11(b) — Federal Reserve countercyclical capital buffer rule
- Federal Reserve Financial Stability Report (semiannual)
See CCyB across 4,335 US banks
BankRegReports ranks every FDIC-insured institution by CCyB, refreshed quarterly within 48 hours of FFIEC release.