Regulatory Alerts2020-10-01
Added · Updated
2020 Q4 Quarterly decision on the countercyclical buffer rate: 0%
The National Bank of Belgium maintains the countercyclical buffer rate for credit exposures in Belgium at 0% for the fourth quarter of 2020. This decision overrides standard credit-to-GDP gap signals, which indicated a 1.4% buffer guide, due to the persistent economic impacts of the Covid-19 pandemic and a contraction in GDP that distorts cyclical risk indicators. The regulator expects to keep the rate unchanged at least until the third quarter of 2021, barring major deviations from baseline projections.
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