Bulgarian c-bank keeps countercyclical capital buffer rate at 0.5% for Q2

Bulgarian c-bank keeps countercyclical capital buffer rate at 0.5% for Q2

Bulgaria's central bank said that it has set the countercyclical capital buffer rate applicable to credit risk exposures in the country at 0.5% for the second quarter of 2021, same as in the previous quarter.

"Maintaining the current level of the buffer rate in 2021 Q2 may contribute to preserving the resilience of the banking system against potential adverse developments in the economic environment, against credit risk related losses and subsequent pressure on profitability and capital position of credit institutions," the Bulgarian National Bank said in a statement on Tuesday.

In March 2020, the central bank decided to cancel the planned increase of the countercyclical capital buffer to 1% as of the second quarter of 2020 in order to support the sector through the coronavirus pandemic.

The countercyclical capital buffer for the third quarter of 2021 will be set in June.

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