PRAGUE, June 13 The Czech central bank decided
to raise the countercyclical buffer rate for domestic banks to
1.0 percent, from 0.5 percent, with effect from July 2018 due to
rapid credit growth and as a precaution for "worse times", it
said on Wednesday.
The central bank said it stood ready to either increase the
rate further or to cut it back, depending on developments in the
The Czech banking sector remains stable and is still highly
resilient to potential adverse shocks, the bank also said with
the release of its annual financial stability report on Tuesday.
It added that the sector would maintain overall capital
adequacy above the 8 percent threshold even in a "very unlikely"
adverse scenario projected by the central bank's stress tests.
(Reporting by Robert Muller and Petra Vodstrcilova; Editing by