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Which of the following statements is NOT correct? A. The conservation buffer is always 2.5% of RWA, regardless of the state of the economy and

Which of the following statements is NOT correct?

A.

The conservation buffer is always 2.5% of RWA, regardless of the state of the economy and the country.

B.

The countercyclical buffer can be different in different countries.

C.

The punishment for breaching the buffers is not as severe as the punishment for breaching the minimum capital requirements.

D.

Regulatory capital that is used for minimum requirements can be used for the conservation and the countercyclical buffers.

E.

A bank cannot meet the countercyclical buffer if the conservation buffer has not been met.

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