June 06, 2024 13:50 GMT
CZECHIA: CNB Adjust Macroprudential Measures Following CNB Board Meeting
CZECHIA
Highlights from the press release following the CNB Board meeting on financial stability and macroprudential measures:
- The Bank Board assessed the configuration of banks’ capital buffers and decided to reduce the countercyclical capital buffer (CCyB) rate to 1.25% with effect from 1 July 2024, to set the systemic risk buffer (SyRB) rate at 0.5% with effect from 1 January 2025.
- The CNB Bank Board discussed the risks related to mortgage lending and decided to leave the upper limit on the LTV ratio at 80% (90% for applicants under 36 years) and keep the upper DSTI and DTI limits deactivated.
- Stress tests have indicated that the Czech financial sector remains resilient to adverse economic developments, thanks partly to the capital buffers applied.
- The CNB will publish the full Financial Stability Report on 24 June.
See the full release here.
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