ČNB will raise countercyclical capital buffer rate

(ČIA) The Czech National Bank (ČNB) is increasing the countercyclical capital buffer rate for exposures located in the Czech Republic to 2.5% from April 1, 2023. It has taken into account the current position of the Czech economy in the financial cycle, the extent of accumulated credit risks in the banking sector's balance sheet, and the development of its vulnerability. It also took into account the significant increase in geopolitical uncertainties, which create the potential for increased and faster materialisation of cyclical risks accumulated in the financial system. A countercyclical rate of 0,50 % is currently applied. A countercyclical rate of 1% will be applied from July 1, 2022, and 1.5% from October 1, 2022, and the ČNB will apply a countercyclical rate of 2% to banks in the period from January 1, 2023, to March 31, 2023.



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