Overall, the FPC judges that domestic risks to UK financial stability have returned to around their pre-Covid levels. Risks from global debt remain material. Asset prices in some markets seem stretched, and globally risks from new loans to highly indebted corporates have continued to build. The FPC sets the countercyclical capital buffer (CCyB) each quarter. This provides banks with an additional buffer of capital to absorb potential losses. When the financial system enters a stress, the buffer is released to support banks in lending to UK households and businesses. The FPC cut the CCyB to 0% in March 2020 to support ... (full story)