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

Explains the implementation of the Basel III countercyclical capital buffer: the CCyB as an extension of the capital conservation buffer, the AI-specific CCyB, the jurisdictional CCyB, reporting and disclosure; the MA's approach to determining and announcing the applicable JCCyB for Hong Kong (the decision steps, the initial reference calculator, the positive neutral CCyB, the comprehensive reference indicators, the macroprudential policy stance, public communication) and the recognition of other jurisdictions' buffers. Classification: a non-statutory guideline issued as a guidance note; version V.3, 01.04.24; applies to locally incorporated AIs.