September 22, 2017 / 8:08 AM / a year ago

Czech central bank keeps countercyclical buffer at 1 percent

PRAGUE, Sept 22 (Reuters) - The Czech National Bank (CNB) kept its countercyclical capital buffer for banks at 1.0 percent on Friday after raising it in its last quarterly review as it looks to keep ahead of strong credit growth in the central European country.

The bank had decided in June to double the countercyclical “bad times” buffer rate on banks to 1.0 percent, which banks will need to meet from July next year.

It said on Friday rapid loan growth in a number of segments could still be seen since its June decision but that it was not necessary yet to react.

“The CNB stands ready to respond to continued high credit growth in an environment of eased credit standards and growth in systemic risks relating mainly to the credit financing of property purchases by raising the countercyclical capital buffer rate further,” it said. (Reporting by Jason Hovet)

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