Countercyclical capital buffer

The countercyclical capital buffer (CCyB) is introduced to mitigate financial procyclicality. This instrument creates an additional buffer of Common Equity Tier 1 capital during periods of excessive credit growth to improve the resilience of the banking sector and reduce the possibility of a financial crisis outbreak. A country’s CCyB rate can be set between 0% and 2.5%, and can be raised in stages by 0.25 pp or multiples of 0.25 pp. This rate can be higher in exceptional circumstances. Rates of this buffer are determined quarterly, based on the reference guide – deviation of the credit-to-GDP ratio from its long-term trend, taking account of other indicators relevant for monitoring the cyclical dimension of systemic risk.

A historical overview of CCyB rates for the Republic of Serbia

Date of rate setting Credit-to-GDP ratio** Credit-to-GDP gap Reference guide* The set rate Start of application 
07/03/2024
Explanation
87.0% -0.2 pp 0,0% 0.0% 31/03/2024
07/12/2023
Explanation
86.9% 0.2 pp 0,0% 0.0% 31/12/2023
07/09/2023
Explanation
86.7% 0.6 pp 0,0% 0.0% 30/09/2023
08/06/2023
Explanation
85.3% -0.1 pp 0,0% 0.0% 30/06/2023
09/03/2023
Explanation
86.0% 1.1 pp 0% 0% 31/03/2023
08/12/2022
Explanation
85.6% 1.5 pp 0% 0% 31/12/2022
08/09/2022
Explanation
83.5% -0.002 pp 0% 0% 30/09/2022
09/06/2022
Explanation
82.3% -0.6 pp 0% 0% 30/06/2022
10/03/2022
Explanation
80.7% -1.6 pp 0% 0% 31/03/2022
09/12/2021
Explanation
80.3% -1.5 pp 0% 0% 31/12/2021
09/09/2021
Explanation
79.4% -1.9 pp 0% 0% 30/09/2021
10/06/2021
Explanation
80.5% -0.3 pp 0% 0% 30/06/2021
11/03/2021
Explanation
80.2% 0.0 pp 0% 0% 31/03/2021
10/12/2020
Explanation
84.1% 0.0 pp 0% 0% 31/12/2020
10/09/2020
Explanation
82.8% -0.7 pp 0% 0% 30/09/2020
11/06/2020
Explanation
78.7% -4.2 pp 0% 0% 30/06/2020
12/03/2020
Explanation
77.4% -5.1 p.p. 0% 0% 31/03/2020
12/12/2019
Explanation
76.0%   -6.3 p.p. 0% 0% 31/12/2019
12/09/2019
Explanation
75.3% -6.7 p.p. 0% 0% 30/09/2019
06/06/2019
Explanation 
75.3%  -8.4 p.p.  0%  0% 30/06/2019
07/03/2019
Explanation 
72.1%  -9.4 p.p.  0%  0% 31/03/2019
06/12/2018
Explanation 
75.3%  -12.9 p.p.  0%  0% 31/12/2018
06/09/2018
Explanation
75.7% -12.4 p.p. 0% 0% 30/09/2018
14/06/2018 
Explanation
75.1% -13.1 p.p. 0% 0% 30/6/2018
14/03/2018 
Explanation
74.9% –13.3 p.p. 0% 0% 31/03/2018
07/12/2017 
Explanation
76.3% –14.0 p.p. 0% 0% 31/12/2017
07/09/2017 
Explanation
75.5% –14.7 p.p. 0% 0% 30/09/2017
08/06/2017 
Decision
Explanation
74.7% –15.6 p.p. 0% 0% 30/06/2017

* Starting from March 2018, the buffer guide applied in setting the CCyB rate is the share of loans to the non-government sector in GDP. In the prior period, the buffer guide was the share of lending to the non-government sector in GDP, which, in addition to loans, included given deposits, investment, securities and other financial assets, interest, fees and commission receivables and other lending.

** In late 2018, the Serbian Statistical Office revised the GDP data for 2015 and 2016 and the first published estimates for 2017 (as the sum of four quarters). The data series back to 2005 were revised by the end of 2018, and the data before 2005 (starting from 1995) are yet to be revised, i.e. the revision of the whole series will be completed during 2019 - as in the EU Member States. Additionally, as of end-2020, the Serbian Statistical Office uses the year 2015 as the benchmark year for the purpose of calculating the rela GDP deflator.

A comparative overview of CCyB rates by country is availabe at the ESRB website .