The CNB sets the countercyclical capital buffer rate at 0.5%

The CNB Bank Board has decided to set the countercyclical capital buffer (CCB) rate for exposures located in the Czech Republic at 0.5%. Banks, credit unions and investment firms are obliged to apply this rate from 1 January 2017. The current CCB rate is zero.

“A higher-than-zero CCB rate is being introduced for the first time because of a more pronounced recovery in lending, which is starting to create conditions for systemic risk to emerge,” said CNB Vice-Governor Vladimír Tomšík.

Given the capital planning needs of credit institutions, the CNB stated in Provision of a general nature on setting the countercyclical capital buffer rate IV/2015 that it would stand ready to increase the CCB rate further in the future should the acceleration of credit growth, easing of credit standards and growth in investor optimism continue.

The CNB Bank Board decided on the new CCB rate at its meeting on 3 December 2015. More details on the CCB and the relevant Provision of a general nature are available on the CNB website:
/en/financial-stability/macroprudential-policy/the-countercyclical-capital-buffer/

Tomáš Zimmermann
CNB spokesman