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Czech National Bank Cuts CCyB Rate By 25bp To 1.75%

CNB

The Czech National Bank decided to lower the countercyclical buffer (CCyB) rate by 25bp to 1.75%, "mainly because of a continued reduction in the cyclical systemic risks in the banking sector’s balance sheet. Banks will be required to apply the rate from 1 April 2024."

  • "The decision took into account the position of the Czech economy close to the bottom of the financial cycle, the size of the credit risks accumulated in the banking sector’s balance sheet and the evolution of the banking sector’s vulnerability. When assessing the cyclical systemic risks, the Bank Board also considered the banking sector’s resilience in an environment of increasing structural systemic risks. The Bank Board will discuss those risks again at its meeting on financial stability in June, when it will also consider setting a systemic risk buffer rate."
  • Click here to see the full statement.

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