Regulatory Alerts2020-07-03
CSSF Regulation No 20-03 on the setting of the countercyclical buffer rate for the third quarter of 2020
The Commission de Surveillance du Secteur Financier (CSSF) sets the countercyclical buffer rate for relevant exposures in Luxembourg at 0.50% for the third quarter of 2020. This rate, which applies from 1 January 2021, is maintained as a precautionary measure despite the credit-to-GDP gap remaining below the activation threshold, due to continued credit cycle acceleration and potential systemic risks. The decision follows the recommendation of the Systemic Risk Committee and is based on an assessment of credit dynamics, property price overvaluation, and the stable resilience of banks.
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