March 7, 2019 / 11:06 AM / 4 months ago

Czech central bank keeps countercyclical capital buffer rate at 1.75 pct

PRAGUE, March 7 (Reuters) - The Czech National Bank (CNB) on Thursday maintained its extra countercyclical capital buffer at 1.75 percent, pausing after a series of increases to push banks to raise capital reserves to prepare for a future economic slowdown.

The buffer rate, intended to protect the banking sector against risks arising over the financial cycle, now stands at 1.25 percent. It will rise to 1.50 percent from July and 1.75 percent from January 2020, based on past decisions, the latest coming last December.

The Czech Republic has seen strong lending growth in recent years and is among a handful of countries in Europe where banks face this charge. (Reporting by Jason Hovet)

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