Czech National Bank cuts banks’ capital buffer rate again

In Hungary

Photo by BalkansCat / Shutterstock.com

The Czech National Bank (CNB) cut the countercyclical capital buffer rate for banks for the second time since the end of March, seeking to bolster a sector key to reviving an economy hit by the coronavirus outbreak, news wire Reuters reports. 

Photo by BalkansCat / Shutterstock.com

The central bank also eased some mortgage lending recommendations for banks but said the crisis so far had not hit property prices, although their decline could come in the coming quarters given the economic situation.

As part of a financial stability review, the CNB said on June 18 the banking sector remained robust thanks to capital buffers and surpluses.

The bank cut the countercyclical capital buffer rate to 0.5% from 1%, with effect from July, and reiterated it was ready to release the buffer fully if needed.

The Czech Republic was among a handful of European countries that had the buffer in place going into the crisis. It was designed to safeguard the sector against economic swings, growing in good times while falling in worse, Reuters noted.

Number of Thefts in Capital Edges Higher in 2023 Figures

Number of Thefts in Capital Edges Higher in 2023

Moldovan Pensions to be Increased as of April 1 World

Moldovan Pensions to be Increased as of April 1

Popular Pain Meds Could Worsen Some Disease Symptoms Science

Popular Pain Meds Could Worsen Some Disease Symptoms

Hungarian Wine Marketing Agency to Host Summit Drinks

Hungarian Wine Marketing Agency to Host Summit

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.