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Q-79. The capital conservation buffer:
A
Will provide an extra 2.5% Common Equity Tier 1 capital buffer in times of stress.
B
Will be used exclusively to protect banks from the losses garnered from OTC derivatives trading.
C
Is required only for banks with inadequate liquidity coverage and net stable funding source ratios.
D
Is covered in the increased Common Equity Tier 1 capital to risk-weighted assets ratio that will increase to 4.5% from the current 2% over the next few years.
