MNB acknowledged that the credit-to-GDP gap was closing at an accelerated pace, but pointed to the impact on the indicator of the economic contraction in 2020, the repayment moratorium, and government- and central bank-supported lending programs.
"Overall, the set of overheating and vulnerability indicators of the cyclical systemic risk map of the [MNB] supplementing this indicator signals a low level of cyclical systemic risk, despite the persistence of lending activity and the cyclical shock resulting from the coronavirus pandemic," MNB said.
"Initiating the build-up of the capital requirement is not justified, and no process indicating the need for intervention can be detected at present," it added.
The central bank and financial market regulator introduced the countercyclical capital buffer in 2016 to mitigate the impact of future financial crises. MNB sets the rate at 0-2.5% of total risk-weighted assets each quarter in a decree. The rate has been 0% since the rollout of the buffer.
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