The NBM maintained the countercyclical buffer rate for exposures from loans held in Moldova at 0%.
The National Bank of Moldova (NBM) announced this, noting that, in particular, by the decision of the NBM Executive Committee, the countercyclical buffer rate for exposures from credits located in Moldova is maintained at 0% of the exposure value. The decision of the NBM Executive Committee on countercyclical buffer was adopted taking into account the indicative system for the buffer as of the end of Q3 2023. Thus, in Q3 2023, the Credit/quarterly GDP ratio amounted to 85.6%, while the deviation of the Credit/GDP ratio with respect to its long-term trend had a negative value of -12.6%. The level of the Credit/GDP ratio indicates the absence of cyclical systemic risks associated with 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 applied to states with relevant exposures from loans are adequately taken into account. The decision was based on analyses and studies conducted by the NBM aimed at assessing potential risks to the banking sector. The frequency of revision of the countercyclical buffer for Moldova is quarterly. //27.02.2024 - InfoMarket.
