capital buffers
[/ˈkæpɪtəl ˈbʌfərz/]
nounpl: capital buffers
colchões de capital
1. Reserve funds or excess capital held by financial institutions above minimum regulatory requirements to absorb potential losses and maintain solvency during economic downturns
Banks are required to maintain capital buffers to ensure financial stability during market volatility.
Os bancos são obrigados a manter colchões de capital para garantir estabilidade financeira durante a volatilidade do mercado.
2. Additional capital requirements imposed on financial institutions to strengthen their resilience and reduce systemic risk
The central bank implemented stricter capital buffers following the financial crisis.
O banco central implementou colchões de capital mais rigorosos após a crise financeira.
Capital buffers are a critical component of post-2008 financial regulation in both Brazil and the USA. In Brazil, the Central Bank (Banco Central do Brasil) implements Basel III standards requiring financial institutions to maintain adequate capital buffers. In the USA, the Federal Reserve, OCC, and FDIC enforce similar requirements. This terminology became more prominent after the 2008 financial crisis and is essential in discussions about macroprudential policy and financial stability.
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