Featured Product

    BNB Sets Countercyclical Buffer at 1% for Fourth Quarter of 2020

    September 17, 2019

    BNB has set the countercyclical capital buffer, or CCyB, rate applicable to credit risk exposures to 1% for the fourth quarter of 2020. The BNB Governing Council will decide on the level applicable in the first quarter of 2021 in December 2019. The level of the countercyclical buffer applicable to credit risk exposures in the Republic of Bulgaria will remain 0% until the end of the third quarter of 2019, will be 0.5% for the fourth quarter of 2019 and the first quarter of 2020, and will increase to 1% for April-September 2020. Maintaining a countercyclical capital buffer in times of favorable economic conditions can help to preserve and further strengthen the capital position of the banking system, thus enhancing the resilience of credit institutions to future credit risk realization.

    According to Article 5, paragraph 3 of the BNB Ordinance No. 8, the reference indicator of article 5, paragraph 1; the relevant guidance from ESRB; and the other indicators that BNB has considered appropriate to reflect cyclical systemic risk are considered in the determination of the level of the countercyclical buffer. As of the end of the second quarter of 2019, the credit or GDP ratio amounts to 95.3%. The deviation of the indicator from the long-term trend is negative by 41.0%, which corresponds to the zero value of the anti-cyclical buffer benchmark. Lending activity in the housing and consumer loans segment remains high. In periods of enhanced lending, it may be possible to begin gradually accumulating cyclical risks that occur if borrowers' ability to service their debt weakens in the event of a future decline in economic activity and an increase in interest rates on loans. 

     

    Related Links (in Bulgarian)

    Keywords: Europe, EU, Bulgaria, Banking, CCyB, Basel III, Regulatory Capital, BNB

    Featured Experts
    Related Articles
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance for New Prudential Standard on Remuneration

    The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.

    October 18, 2021 WebPage Regulatory News
    News

    OCC Updated LIBOR Self-Assessment Tool for Banks

    The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).

    October 18, 2021 WebPage Regulatory News
    News

    TCFD Updates Guidance for Financial Disclosures on Climate Risk

    The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    October 14, 2021 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.

    October 14, 2021 WebPage Regulatory News
    News

    ACPR Implements Updates Related to DPM Version 3.1

    The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.

    October 14, 2021 WebPage Regulatory News
    News

    EBA Note Examines Transition Risks of Benchmark Rates

    The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.

    October 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7571