PRAGUE, March 24 (Reuters) - The Czech National Bank (CNB) kept its countercyclical capital buffer for banks at 0.5 percent on Friday in a quarterly review of the measure introduced at the end of 2015 to keep tabs on strong lending.
The bank said that while there had been changes since it introduced the buffer indicating a moderate rise in systemic risk, it had decided to keep the rate unchanged.
It reiterated strong home loan growth was increasing the sector’s vulnerability to economic swings and property price growth was above fundamental levels.
“If credit growth remains high, credit standards ease further and systemic risk continues to grow, the CNB will stand ready to increase this buffer rate further,” the bank said. (Reporting by Jason Hovet; Editing by Robert Muller)