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

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News
    News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697