CNB Board decision on setting the countercyclical capital buffer rate

The Czech economy is in the growth phase of the financial cycle and the estimated level of cyclical systemic risks in the banking sector’s balance sheet remains stable. The banking sector as a whole is resilient and the current countercyclical capital buffer rate for exposures of banks and credit unions located in the Czech Republic of 1.25% limits the sector’s capital vulnerability to a potential economic downturn. Based on this assessment, the Bank Board of the Czech National Bank decided at its meeting on financial stability to leave the rate at 1.25%.