What is CCB Full Form in Banking?
The full form of CCB in Banking is Capital Conservation Buffer. This was a financial concept that was introduced with the Base III Norms. As per the regulations under Capital Conservation Buffer, a bank must build up a capital buffer during the good times. The bank can use this capital buffer under poor economic conditions or during stress. The Capital Conservation Buffer may differ depending on the country. In short, you can consider Capital Conservation Buffer as an emergency fund for the banks.
What Else Should We Know About CCB?
In India, the RBI has specific guidelines around CCB. As per the RBI guidelines, the bank must achieve a total capital of 9% and a CCB of 2.5%. In such a case, the minimum total capital adds up to 11.5%. This step was taken to prevent the banking crisis like in 2008. CCB is usually not a problem for private banks in India since they are well-capitalized. In India, the implementation of CCB was initiated in 2016 in a phased manner.
Other Full Forms of CCB
- Central Cooperative Bank
- China Construction Bank
- Cash Collection Branch
- Consumer and Community Banking
- Countercyclical Capital Buffer
- Corporate Client Banking