On Oct. 18, GRE CB set the countercyclical capital buffer at 0.25%.
GRE CB announced that the countercyclical capital buffer rate has been set at 0.25%.
The assessment of cyclical systemic risks in Greece for the fourth quarter of 2024 shows that they remain contained and the risk environment appears neutral.
Follows GRE CB Jun. 2024 issued countercyclical capital buffer Q3/2024, see #216555.
Capital Buffer
Adopted a positive countercyclical capital buffer in a neutral risk environment, under Executive Committee Act 235/1/07.10.2024, which is activated at an early stage of economic/financial cycle, when cyclical systemic risks are not subdued or elevated.
The implementation of this buffer contributes to the creation of a sufficient capital buffer under normal conditions, i.e. before cyclical systemic risks accumulate.
This enables institutions to absorb losses and ensure the smooth flow of funding to the real economy in cases of unforeseen shocks, not linked to the economic and financial cycle phase (e.g. a global health crisis, such as the Covid-19 pandemic).
Taking all into account, GRE CB by Executive Committee Act 235/2/07.10.2024, set the countercyclical capital buffer rate for Greece at 0.25%.
Effectiveness
The countercyclical capital buffer rate of 0.25% is effective from Oct. 1, 2025.
