BDE has decided to maintain the countercyclical capital buffer (CCyB) rate applicable to credit exposures in Spain at 0% in the fourth quarter of 2020. To alleviate the impact of the COVID-19 shock, the provision of lending to the real economy by credit institutions is an essential component of the strategy. Consequently, BDE has decided to maintain the CCyB rate at the minimum level of 0%. BDE maintains its forward-looking stance of not increasing the CCyB rate over the coming quarters, at least until the main economic and financial effects arising from the COVID-19 crisis have dissipated.
In addition, the Executive Committee of BDE, at its meeting of October 02, 2020, has determined the existence of exceptional macroeconomic circumstances, referred to in an article of the Capital Requirements Regulation (CRR), which justify that the less significant Spanish credit institutions may exclude certain exposures to Eurosystem central banks from the total exposure (denominator) of the leverage ratio. In particular, these institutions may exclude coins and banknotes of legal tender in the jurisdiction of the central bank and assets that represent credits to the central bank, including reserves therein. Regarding the latter assets, the exclusion may only apply to exposures that ECB has identified as relevant for the transmission of monetary policy, in its Decision of September 16, 2020 (ECB/2020/44); this includes the deposits held in the deposit facility and the balances held in the reserve accounts, including those that cover the minimum reserve requirements. Less significant Spanish credit institutions may make use of this exclusion, from the report corresponding to the third quarter of 2020 until June 27, 2021.
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Keywords: Europe, Spain, Banking, COVID-19, CCyB, CRR, Basel, Leverage Ratio, Regulatory Capital, Less Significant Institutions, ECB, BDE
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