CNB leaves countercyclical capital buffer rate at 1.0%

The CNB Bank Board has decided to leave the countercyclical capital buffer rate for exposures located in the Czech Republic at 1.0%.

The countercyclical capital buffer was introduced as an important macroprudential policy instrument within the European Union in 2014. It is intended to protect the banking sector against risks arising from its behaviour over the financial cycle, in particular excessive growth in lending, which contributes to the accumulation of systemic risks and increases the potential for sharp fluctuations in economic activity.

The CNB Bank Board approved the setting of the countercyclical capital buffer rate at its meeting on 31 August 2017. More details on this decision are available in the Provision of a general nature on setting the countercyclical capital buffer rate for the Czech Republic III/2017.

Marek Zeman
Director, CNB Communications Division