CNB raises countercyclical buffers as risks build
The central bank stress-tests not only the financial sector but also households and the government
The Czech National Bank has tightened the countercyclical capital buffer as its latest financial stability report shows risks are building in the economy.
The report, published today (June 11), cites the “upward phase” of the financial cycle as a key reason for raising the buffer from 1.5% to 2%, with effect from July 2020. The central bank also notes a “slight increase” in the vulnerability of the banking sector to any downturn.
Jiří Rusnok, governor of the CNB, said in a presentation that
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