MNI POLICY: Belgium Raises Countercyclical Capital Buffer

By Luke Heighton

     LONDON (MNI) - Belgium has activated its countercyclical buffer for credit

risk exposures to the Belgian private non-financial sector,

     The decision to raise the buffer from 0% to 0.5% for the third quarter of

2019, will require banks to build up around E1 billion and becomes binding from

1 July 2020.

     "The National Bank of Belgium has adopted this measure as a precaution in

light of an accelerating credit cycle. However, the Bank is also taking due

account of the current economic uncertainty," it said in a statement.

     Today's announcement comes one month after the German Financial Stability

Committee recommended its domestic countercyclical capital buffer (CCyB) be

activated at 0.25% from Q3 2019, equivalent to more than E5 billion.

     France ordered its banks to raise their CCyBs from 0.25% to 0.5% in March,

while Ireland and Luxembourg have also activated or hike their countercyclical

buffer in recent months.

--MNI Frankfurt Bureau; +49-69-720-146; email: luke.heighton@marketnews.com

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

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