{"id":16918,"date":"2026-05-18T14:51:01","date_gmt":"2026-05-18T14:51:01","guid":{"rendered":"https:\/\/saharanews.in\/2026\/05\/18\/rbi-sees-no-signs-of-excess-credit-risk-keeps-countercyclical-capital-buffer-inactive\/"},"modified":"2026-05-18T14:51:01","modified_gmt":"2026-05-18T14:51:01","slug":"rbi-sees-no-signs-of-excess-credit-risk-keeps-countercyclical-capital-buffer-inactive","status":"publish","type":"post","link":"https:\/\/saharanews.in\/?p=16918","title":{"rendered":"RBI sees no signs of excess credit risk, keeps countercyclical capital buffer inactive"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div data-articlebody=\"1\"><video-embed value=\"false\"\/><\/p>\n<div class=\"ihgno clearfix  \">\n<div class=\"e9jwa\">\n<div class=\"vdo_embedd\">\n<div class=\"GfdvZ\">\n<section class=\"_bIDB  clearfix id-r-component leadmedia undefined undefined  E9tg9 \" style=\"top:0px\">\n<div class=\"_bIDB\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">\n<div class=\"ypVvZ\">\n<div class=\"WGttI\"><img src=\"https:\/\/static.toiimg.com\/thumb\/msid-131178807,imgsize-957794,width-400,height-225,resizemode-4\/-.jpg\" alt=\"RBI sees no signs of excess credit risk, keeps countercyclical capital buffer inactive\" decoding=\"async\" fetchpriority=\"high\"\/><\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n<p>The Reserve Bank of India (<a href=\"https:\/\/timesofindia.indiatimes.com\/topic\/rbi\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\">RBI<\/a>) on Monday decided against activating the countercyclical capital buffer (CCyB), indicating that current financial and credit conditions do not warrant an additional capital requirement for banks, PTI reported.<span class=\"id-r-component br\" data-pos=\"4\"\/>The central bank said the decision followed a review and empirical assessment of indicators used under the CCyB framework.<span class=\"id-r-component br\" data-pos=\"6\"\/>&#8220;Based on review and empirical analysis of CCyB indicators, it has been decided that it is not necessary to activate CCyB at this point in time,&#8221; RBI said in a statement.<span class=\"id-r-component br\" data-pos=\"8\"\/>Under the RBI (Commercial Banks &#8211; Prudential Norms on Capital Adequacy) Directions, 2025, the CCyB framework is activated when financial conditions indicate rising systemic risks linked to excessive credit growth.<span class=\"id-r-component br\" data-pos=\"12\"\/>The framework primarily relies on the credit-to-GDP gap as a key indicator, along with supplementary metrics.<span class=\"id-r-component br\" data-pos=\"14\"\/>According to the RBI, the CCyB mechanism is intended to serve two broad objectives.<span class=\"id-r-component br\" data-pos=\"16\"\/>Firstly, it requires a bank to build up a buffer of capital in good times, which may be used to maintain the flow of credit to the real sector in difficult times.<span class=\"id-r-component br\" data-pos=\"18\"\/>Secondly, it achieves the broader macro-prudential goal of restricting the banking sector from indiscriminate lending in the periods of excess credit growth that have often been associated with the building up of system-wide risk.<span class=\"id-r-component br\" data-pos=\"21\"\/>The framework was introduced globally after the 2008 financial crisis as part of measures proposed by the Group of Central Bank Governors and Heads of Supervision (GHOS) under the Basel framework to strengthen financial system resilience.<span class=\"id-r-component br\" data-pos=\"23\"\/><\/div>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/timesofindia.indiatimes.com\/business\/india-business\/rbi-sees-no-signs-of-excess-credit-risk-keeps-countercyclical-capital-buffer-inactive\/articleshow\/131178725.cms\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Reserve Bank of India (RBI) on Monday decided against activating the countercyclical capital buffer (CCyB), indicating that current financial and credit conditions do not warrant an additional capital requirement for banks, PTI reported.The central bank said the decision followed a review and empirical assessment of indicators used under the CCyB framework.&#8220;Based on review and&#8230;<\/p>\n","protected":false},"author":1,"featured_media":16919,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[],"class_list":["post-16918","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/saharanews.in\/index.php?rest_route=\/wp\/v2\/posts\/16918","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/saharanews.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/saharanews.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/saharanews.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/saharanews.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16918"}],"version-history":[{"count":0,"href":"https:\/\/saharanews.in\/index.php?rest_route=\/wp\/v2\/posts\/16918\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/saharanews.in\/index.php?rest_route=\/wp\/v2\/media\/16919"}],"wp:attachment":[{"href":"https:\/\/saharanews.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/saharanews.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/saharanews.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}