Countercyclical Buffer Rate for the Republic of Serbia Kept Unchanged
At its meeting on 14 June 2018, the NBS Executive Board decided to keep the countercyclical buffer (CCB) rate for the Republic of Serbia at 0%.
As part of its responsibility to set measures and activities aimed at maintaining and strengthening financial stability, and based on the Decision on Capital Adequacy of Banks (RS Official Gazette, No 103/2016), the NBS calculates on a quarterly basis the reference guide based on which it sets the CCB rate for the Republic of Serbia.
The reference guide is calculated based on the deviation of the credit-to-GDP ratio from its long-term trend. March 2018 data show that the share of total loans in GDP equalled 75.1%, while the estimated credit-to-GDP gap was -13.1 percentage points. The estimated credit-to-GDP gap is below its long-term trend, however it is entering the recovery phase, which indicates that the financial cycle is in a phase in which the introduction of a CCB rate above 0% could constrain credit activity. Also, the estimated credit-to-GDP gap is below its reference value of 2 pp and indicates that the reference guide for setting the CCB rate is 0%. Given all the above, the NBS Executive Board decided to keep the CCB rate for Serbia unchanged.
Additional information and explanation about the CCB can be found on the NBS website, in the part Financial Stability, Capital Buffers.
Financial Stability Department