The NBM maintained the countercyclical buffer rate for exposures from credits located in Moldova at the level of 0%
The National Bank of Moldova (NBM) informed about this, noting that, in particular, the Executive Committee of the NBM set the countercyclical buffer rate for exposures from credits in Moldova, taking into account the indicative system for the buffer as of the end of the first quarter of 2024. Thus, in the first quarter, the Credit/quarterly GDP ratio amounted to 85.1%, while the deviation of the Credit/GDP ratio from its long-term trend had a negative value of -11.2%. According to the NBM, the low level of the Credit/GDP ratio indicates the absence of cyclical systemic risks related to excessive credit growth, which supports the decision to maintain the countercyclical buffer rate for the relevant exposures of Moldova at 0%. At the same time, in order to properly calculate the countercyclical capital buffer inherent in the bank, banks should ensure that the countercyclical buffer rates applicable to the states in which they have relevant exposures from loans are adequately taken into account. The decision was based on the analyses and studies carried out by the NBM aimed at assessing the potential risks for the banking sector. The countercyclical buffer in Moldova is reviewed quarterly. //13.08.2024 - InfoMarket.
