Key Functions

Monetary Stability
Linked Exchange Rate System
Interest Rate Adjustment Mechanism
Liquidity Support to Banks
EFAC Currency Board
Transparency of Currency Board Operations
Notes & Coins of
Hong Kong
Coin Collection Programme
Milestones of Monetary Reform
History of Hong Kong's Exchange Rate System
Banking Stability
Banking Policy & Supervision
The Three-tier Banking System
Regulatory Framework
Advisory Committees
Regulation of Money Brokers
Consumer Corner
HKMA’s Work in Relation to Strengthening Financial Consumer Protection
Consumer Education Programme
Frequently Asked Questions
Complaints about Banks
Internet Banking
Security Controls for ATM Services
Guide to Authorization
Supervisory Policy Manual
Enhanced Competency Framework for Banking Practitioners
Oversight of Financial
Market Infrastructures
Basel III
Other Basel Committee Standards
Exposure Limits
Systemically Important Authorized Institutions (SIBs)
Resolution Framework
Resolution Standards
Resolution Planning
Resolution Execution
Resolution Publications
Review of the HKMA's Work on Banking Stability
Sharing of Mortgage Data
Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT)
AML/CFT-related Circulars
Sanctions-related Notices and Updates
Countercyclical Capital Buffer (CCyB)
International Financial Centre
International & Regional Financial Co-operation
International & Regional Financial Co-operation
Participation in Multilateral Agencies & International Forums
Co-operation with Other Central Banks
Application of the "One Country, Two Systems" Principle
Renminbi Business in Hong Kong
Infrastructure Financing Facilitation Office (IFFO)
Debt-market Development
Exchange Fund Bills & Notes
Government Bond Programme
Important Policy Initiatives Affecting The EFBN Programme & Other Hong Kong Dollar Debt Instruments
Financial Infrastructure in Hong Kong
Payment Systems
OTC Derivatives Trade Repository
System Links
Pan-Asian CSD Alliance
Retail Payment Development
Useful Links
Regulatory Regime for Stored Value Facilities (SVF) and Retail Payment Systems (RPS)
Regulation of Stored Value Facilities (SVF)
Complaints about SVF Licensees
Regulation of Retail Payment Systems (RPS)
Fintech Facilitation Office (FFO)
Enhanced Competency Framework for Banking Practitioners
Exchange Fund

The Countercyclical Capital Buffer (CCyB)

What is the CCyB?

The CCyB is a part of the Basel III regulatory capital framework. In essence it is a mechanism to build up additional capital during periods of excessive credit growth when risks of system-wide stress are observed to be growing markedly. This capital can then be “released” when the credit cycle turns to absorb losses and enable the banking system to continue lending in the subsequent downturn.

The CCyB requirement is expressed as a percentage of an authorized institution’s risk-weighted assets and has to be met with common equity tier 1 capital (CET1) (the highest quality regulatory capital in terms of loss absorption).

Under the Basel III framework national authorities are required to “monitor credit growth and other indicators that may signal a build-up of system-wide risk and make assessments of whether credit growth is excessive and is leading to the build-up of system-wide risk” (Para 138(a) Basel III: A global regulatory framework for more resilient banks and banking systems (Rev. June 2011)).

Based on their assessment national authorities should put in place a CCyB requirement when circumstances warrant. Whilst the CCyB requirement remains in place it takes effect as an extension of an authorized institution’s Capital Conservation Buffer. This means that authorized institutions will not breach their continuing authorization criteria should their levels of CET1 capital fall within the extended buffer zone (in other words the buffer is not a “hard minimum” requirement which is not allowed to be breached) but they will be subject to restrictions on distributions of earnings for so long as they do not meet the extended buffer requirement.

Whilst regulatory capital requirements are imposed by national authorities on banks incorporated in their jurisdictions, the Basel Committee has established a jurisdictional reciprocity mechanism for the CCyB. In order to maintain a level playing field between domestic and cross-border banks, each national authority is responsible for ensuring that the banks incorporated in their jurisdiction (for which they are the home supervisor) calculate buffer requirements on the basis of the CCyB in place in the jurisdictions where they have private sector credit exposures.

Basel III provides for implementation of the CCyB from 1 January 2016. To implement the measure locally, the Monetary Authority has, through the Banking (Capital) (Amendment) Rules 2014, amended the Banking (Capital) Rules to incorporate provisions for the imposition of capital requirements arising from the operation of the CCyB, as well as from the Capital Conservation Buffer which also goes into effect from 1 January 2016.

Implementation of the CCyB in Hong Kong

SPM CA-B-1 Countercyclical Capital Buffer (CCyB) – Approach to its Implementation

SPM CA-B-3 Countercyclical Capital Buffer (CCyB) – Geographic Allocation of Private Sector Credit Exposures

Quarterly Bulletin article (September 2013) “Implementing the Basel III Countercyclical Capital Buffer”

Documents issued by the Basel Committee on Banking Supervision relating to the CCyB

Frequently asked questions on the Basel III Countercyclical Capital Buffer (October 2015)

Basel III: A global regulatory framework for more resilient banks and banking systems (rev June 2011)

Guidance for national authorities operating the countercyclical capital buffer (December 2010)

Latest applicable jurisdictional CCyB rates

Hong Kong (updated on 27 January 2017)

  • Currently in effect: 1.25%
  • Announced: 1.875% to become effective 1 January 2018.

Announcements by the Monetary Authority of applicable CCyB rate for Hong Kong

27 January 2017  -

CCyB Announcement

Press Release

14 January 2016  -

CCyB Announcement

Press Release

27 January 2015  -

CCyB Announcement

Press Release



Historical time series on the applicable CCyB rate for Hong Kong

Downloadable Excel worksheet

Comprehensive Reference Indicators

Current list

Latest applicable jurisdictional CCyB rates

Overseas jurisdictions

Last revision date: 3 July 2017
Tender Invitations
Legislative Council Issues
The HKMA Information Centre
Monetary Stability
Banking Stability
International Financial Centre
Exchange Fund
Annual Report
Half-Yearly Monetary & Financial Stability Report
Quarterly Bulletin
HKMA Background Briefs
Reference Materials
CMU Bond Price Bulletin
Economic & Financial Data for Hong Kong
Monthly Statistical Bulletin
Monetary Statistics
Press Releases
Guidelines & Circulars
Forthcoming Events
Account Opening
Consumer Corner
Consumer Education Programme
Complaints about Banks
Complaints about SVF Licensees
Internet Banking
Fraudulent Bank Websites, Phishing E-mails and Similar Scams
Be Careful of Bogus Phone Calls and SMS Messages
Authenticate the Callers and Bank Hotline Numbers
Register of AIs & LROs
Register of Securities Staff of AIs
Register of SVF Licensees
Investment Products Related to Lehman Brothers
Photo Gallery