The purpose of the countercyclical capital buffer introduced by Basel III is
to:

Question

Answer

enhance global movement of funds to those countries experiencing excess aggregate credit growth.

Answer

force DIs to immediately adjust capital to meet the 2.5 percent level of buffer capital required.

Answer

assist insolvent banks to build capital during economic expansions.

Answer

increase the resilience of the banking system and reduce systemic exposures to economic downturns.

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