BNB Sets Countercyclical Buffer at 1% for Third Quarter of 2020
BNB has set the level of countercyclical capital buffer (CCyB) applicable to credit risk exposures in the Republic of Bulgaria at the rate of 1% for the third quarter of 2020. The level of the CCyB applicable to credit risk exposures in the Republic of Bulgaria remains 0% until the end of the third quarter of 2019, 0.5% for the fourth quarter of 2019 and the first quarter of 2020 and 1% for the period April-June 2020. The Governing Council of BNB will make a decision on the level of buffer applicable in the fourth quarter of 2020 in September 2019.
Trends from previous quarters for increased activity on the credit market in the country remain. In times of increased lending, BNB states that it is possible to start gradually accumulating cyclical risks that would occur if the ability of borrowers to service obligations weakened in the event of a possible downturn in economic activity and an increase in risk premiums included in interest rates. Maintaining an anti-cyclical capital buffer in a period of favorable economic conditions may contribute to preserving and further enhancing the capital position of the banking system, thus enhancing the sustainability of credit institutions in future credit risk realization.
Related Links (in Bulgarian)
Keywords: Europe, EU, Bulgaria, Banking, CCyB, Regulatory Capital, Basel III, BNB
Featured Experts
Trevor Howes
IFRS 17 technical advisor; AXIS actuarial modeling system expert; extensive experience in life insurance and life reinsurance, with focus on modeling, valuation, and financial reporting
Nick Jessop
Scenario modeling expert; risk management specialist; quantitative financial modeler
Anna Krayn
CECL adoption expert; engagement manager for loss estimation, internal risk capability enhancement, and counterparty credit risk management
Previous Article
BDE Releases Technical Instructions for Financial Reporting by BanksRelated Articles
|
News
APRA Revises Standard on Margin Rules for Uncleared DerivativesAPRA revised CPS 226, which is the prudential standard on margin and risk mitigation requirements for non-centrally cleared derivatives.
September 19, 2019
WebPage
Regulatory News
|
|
News
PRA Issues Consultation on Prudent Person Principle Under Solvency IIPRA, via the consultation paper CP22/19, has set out its proposed expectations for investment by firms, in accordance with the Prudent Person Principle (PPP).
September 18, 2019
WebPage
Regulatory News
|
|
News
EIOPA Forms Consultative Expert Group on Digital Ethics in InsuranceEIOPA established the Consultative Expert Group on Digital Ethics in Insurance to assist EIOPA in the development of digital responsibility principles in insurance.
September 17, 2019
WebPage
Regulatory News
|
|
News
FDIC Approves Proposal to Amend Swap Margin RuleFDIC approved what would be a joint proposal by the US Agencies (FCA, FDIC, FED, FHFA, and OCC) to amend regulations that require swap dealers and security-based swap dealers under the agencies’ respective jurisdictions to exchange margin with their counterparties for swaps that are not centrally cleared (Swap Margin Rule).
September 17, 2019
WebPage
Regulatory News
|
|
News
FASB Proposes Taxonomy Changes Related to Topics 848 and 470FASB proposed taxonomy improvements for the proposed Accounting Standards Update on topic 848 on facilitation of effects of reference rate reform on financial reporting.
September 16, 2019
WebPage
Regulatory News
|
|
News
BoE Statement on Recalculating Transitional Measures Under Solvency IIBoE notified that it will be willing to accept applications from firms to recalculate transitional measure on technical provisions (TMTP) as at September 30, 2019.
September 16, 2019
WebPage
Regulatory News
|
|
News
BIS Hosts Conference to Discuss Issues from Emergence of StablecoinsBIS hosted a conference in Basel to discuss policy and regulatory issues posed by the emergence of stablecoin initiatives backed by financial institutions and large technology companies.
September 16, 2019
WebPage
Regulatory News
|
|
News
BIS Paper on Embedded Supervision of Blockchain-Based Financial MarketBIS published a working paper that investigates ways to regulate and supervise blockchain-based financial markets.
September 16, 2019
WebPage
Regulatory News
|
|
News
BoE Paper on Market-Implied Systemic Risk and Shadow Capital AdequacyBoE published a working paper that presents a forward-looking approach to measure systemic solvency risk.
September 13, 2019
WebPage
Regulatory News
|
|
News
HKMA Consults on Policy Module on Pillar 2 Supervisory Review ProcessHKMA is consulting on the revised Supervisory Policy Manual module CA-G-5 that sets out the HKMA approach to conducting the supervisory review process under Pillar 2.
September 13, 2019
WebPage
Regulatory News
|
