Countercyclical capital buffer

Published: 8/11/2017 Modified: 19/12/2022
The countercyclical buffer is a releasable macroprudential instrument used to counter procyclicality in bank lending and mitigate risks to the stability of the financial system.

Exposure to cyclical systemic risks, which usually become apparent only after the cycle reversal, increases during the upward phase of the financial cycle. Countercyclical buffer (CCyB) build-up in the upward phase of the financial cycle ensures timely allocation of additional capital. This, in turn, enables credit institutions to absorb losses and maintain lending activity more easily in the downward phase of the financial cycle or in case of a sudden crisis.

Since the introduction of this instrument in 2015, the CCyB rate for all credit institutions in the Republic of Croatia stood at 0%. From 31 March 2023 the buffer rate will be raised to 0.5%, and from 31 December 2023 to 1%.

Decision on the countercyclical buffer rate (OG 148/2022), (16/12/2022)

 


METHODOLOGICAL FRAMEWORK FOR SETTING THE COUNTERCYCLICAL BUFFER RATE FOR THE REPUBLIC OF CROATIA


PAST DECISIONS

Decision on the countercyclical buffer rate (OG 39/2022), (28/3/2022)

Decision on the countercyclical buffer rate (OG 9/2015), (19/1/2015)

 


PAST NOTIFICATIONS