Fed says sees stable markets in annual statement on capital

October 24, 2016 11:04 AM EDT

A man walks past the U.S. Federal Reserve in Washington October 12, 2016. REUTERS/Kevin Lamarque

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WASHINGTON (Reuters) - The Federal Reserve on Monday said it was holding an emergency capital level steady for large banks, a signal that the U.S. central bank does not foresee problems in financial markets.

The Fed can determine that large banks need extra capital to face a market crisis under a rule known as the Countercyclical Capital Buffer (CCyB).

In its annual statement on the rule on Monday, the Fed said that it did not envision triggering that safety measure.

In regulatory jargon, maintaining the CCyB at zero indicates regulators do not foresee problems.

"The Federal Reserve Board announced on Monday it has voted to affirm the Countercyclical Capital Buffer (CCyB) at the current level of 0 percent," the regulator said in a statement.

(Reporting By Patrick Rucker; Editing by Chizu Nomiyama)

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