logo

NBM maintains countercyclical buffer rate


https://www.old.ipn.md/en/nbm-maintains-countercyclical-buffer-rate-7966_1106454.html

The countercyclical buffer rate for credit exposures located in the Republic of Moldova remains at 0% of the risk exposure amount. A decision to this effect was adopted by the Executive Board of the National Bank of Moldova (NBM), IPN reports.

When revising the decision, the Executive Board took into account the reference for the buffer to the situation at the end of the first quarter of 2024. The quarterly credit-to-GDP ratio was 85.1%. The deviation of the credit-to-GDP ratio from its long-term trend saw a negative value of -11.2%.

“The level of the credit-to-GDP ratio denotes the absence of cyclical systemic risks related to excessive lending growth, which supports the decision to maintain the countercyclical buffer rate for relevant exposures in the Republic of Moldova at 0%,” said the NBM.

At the same time, in order to correctly calculate the bank-specific countercyclical capital buffer, banks must ensure adequate records of the countercyclical buffer rates applicable to states where they have relevant credit exposures.

“The decision was taken on the basis of the analyses and studies carried out by the NBM, which aim to achieve the intermediate objective of the macro-prudential policy of reducing and preventing excessive credit growth in the banking sector. The frequency of revision of the countercyclical buffer rate for the Republic of Moldova is quarterly,” reads the central bank’s press release.