Federal Register: Federal Reserve Adopts Policy Statement on Countercyclical Capital Buffer

The Board of Governors of the Federal Reserve System adopted a final policy statement that describes the framework that the Board will follow in setting the U.S. countercyclical capital buffer. The final policy statement was published in the Federal Register.

The U.S. countercyclical buffer is a tool that allows the Board to gradually raise capital requirements for banking organizations that are subject to the advanced approaches capital rules, savings and loan holding companies and state member banks "when the risk of above-normal losses is elevated."

The final policy statement is effective on October 14, 2016.