Finances

NBM PRESERVES ZERO RATE OF COUNTER-CYCLICAL BUFFER

05 november, 2019

Executive Committee of the National Bank of Moldova (NBM) preserved the rate of the counter-cyclical buffer for relevant credit exposure in Moldova at the level of 0% given the indicative system for buffer as of the end of the 2Q2019.

According to the NBM, in the second quarter the correlation credit/quarter GDP accounted for 76%, while the deviation of the credit/GDP correlation against its long-term trend had negative importance – 32.6%.

“The low level of the credit/GDP points at lack of cyclical systemic risks, connected with excessive growth of crediting, which supports the decision to preserve the rate of counter-cyclical buffer for relevant credit exposure in Moldova at the level at 0%”, NBM specialists explained.

With all this, they pointed that for correct calculation of counter-cyclical capital buffer, banks must ensure adequate accounting of the buffer rates, applied for the state, in which they have relevant credit exposure.

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