The Capital conservation buffer (CCoB) is designed to improve banks’ loss-absorbing capacity. It equals 2.5% of a bank’s risk-weighted assets (pursuant to Article 92(3) of the Capital Requirements Regulation (CRR). It is enshrined in German law in section 10c of the Banking Act.
Section 48t of the Banking Act also provides an option to increase the capital conservation buffer. At the European level, the procedure to be followed is specified in Article 458 of the CRR.