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Countercyclical Buffer Rate for Serbia Kept Unchanged

At its meeting of 6 December 2018, the NBS Executive Board decided to keep the countercyclical buffer (CCyB) 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 CCyB 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. September 2018 data show that the share of total loans in GDP equalled 75.3%, while the estimated credit-to-GDP gap was -12.9 percentage points. The estimated credit-to-GDP gap is recovering, but is still below its long-term trend, which indicates that the financial cycle is in a phase in which the introduction of a CCyB rate above 0% could constrain credit activity. Nevertheless, closing of the gap in some segments of household lending indicates risk in this credit segment and calls for targeted measures to curb the risk without jeopardising overall lending activity. 
Additional information about the CCyB and the explanation of the above decision are available on the NBS website, in the part Financial Stability, Capital Buffers.

Financial Stability Department