Central Bank of Ireland Increases CCyB Rate on Irish Exposures

In increasing the CCyB requirement at this stage, the Central Bank of Ireland is looking to protect the banking sector against potential losses associated with a build-up of cyclical systemic risk and thereby support a sustainable provision of credit to the real economy throughout the financial cycle. The setting of the rate at 1% acknowledges the exposure and susceptibility of the Irish economy to a downturn or the materialization of cyclical systemic risk, potentially arising from an external shock. The decision also reflects the expected limited impact on the credit environment and real economy at this stage. In line with this objective and taking account of the relative sensitivity of the Irish macro-financial environment, the Central Bank of Ireland expects to maintain a positive CCyB rate when there is a sustained trajectory in indicators related to emerging cyclical systemic risk. 

Related Links

• Press Release
• Announcement (PDF)
• CCyB Explainer
• CCyB FAQ and Relevant Documents

Effective Date: July 05, 2019

Keywords: Europe, Ireland, Banking, CCyB, Systemic Risk, Capital Requirements, Central Bank of Ireland