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Bank Board Cuts Countercyclical Capital Buffer Rate To 2%

CNB

The Czech National Bank decided to lower its countercyclical capital buffer (CCyB) rate by 25bp to 2%, the second back-to-back reduction to the rate. The Bank Board took the decision "mainly because of a gradual reduction in the cyclical systemic risks in the banking sector’s balance sheet". The reduced rate takes effect from October 1.

  • "When making its decision, the Bank Board took into account the current position of the Czech economy in the financial cycle, the size of the credit risks accumulated in the banking sector’s balance sheet and the evolution of its vulnerability."
  • The Bank Board sets the CCyB during quarterly meetings on financial stability. Policymakers lowered the rate by 25bp to 2.25% at their previous meeting.
  • Click here to see the full statement.

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