Regulatory Alerts2020-12-29
CSSF Regulation No 20-11 of 29 December 2020 on the setting of the countercyclical buffer rate for the first quarter of 2021
The Commission de Surveillance du Secteur Financier sets the countercyclical buffer rate at 0.50% for relevant exposures located in Luxembourg for the first quarter of 2021. This decision, effective from 1 January 2021, follows the Systemic Risk Committee's recommendation to maintain the rate due to a credit-to-GDP gap exceeding the 2% activation threshold. The CSSF determined that continued credit cycle acceleration poses potential systemic risk, necessitating the retention of the buffer to ensure bank resilience.
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