This capital buffer serves banks for absorbing possible losses at times of economic slowdown and economic crisis on one hand and on the other for limiting excessive credit growth at times of rising optimism and strong recovery of the economic cycle. In this sense, the countercyclical capital buffer is aimed at mitigating the fluctuations of financial cycles.
The current countercyclical capital buffer rate for all banks in the Republic of Croatia is 0%.
- Decision on the countercyclical buffer rate (OG 9/2015), (19/1/2015)
- Explanation for setting the countercyclical buffer rate for the Republic of Croatia (January 2015)
Announcement of the continued application of the countercyclical buffer rate for the Republic of Croatia for the third quarter of 2021
To ensure continuity of bank lending to the non-financial private sector amid worsening of economic developments caused by the coronavirus pandemic, the countercyclical buffer rate that will be applied in the third quarter of 2021, i.e. from 1 July 2021 will remain to be 0%. The relevant information pursuant to Article 119 and Article 123 of the Credit Institutions Act can be found at CNB website.
As competent macroprudential authority, the CNB will continue to monitor closely the economic and financial developments and will act in the area of macroprudential policy in coordination with monetary policy and supervisory measures to facilitate and accelerate economic recovery after the crisis caused by the coronavirus pandemic.
Chart 1: Buffer guide
Chart 2: Specific indicator of relative indebtedness and short-term gap
Chart 3: Standardised indicator of relative indebtedness and short-term gap