Czech central keeps countercyclical buffer rate, deactivates DTI limit in mortgage lending

Moneta Money Bank, A.s

29/11/2023 14:45

PRAGUE, Nov 29 (Reuters) - The Czech National Bank
maintained the countercyclical capital buffer rate for banks at
2.00% after two consecutive cuts, it said on Wednesday, while
also deactivating the upper limit of its debt-to-income (DTI)
ratio for mortgage lending.
    The bank will maintain the upper limits on loan-to-value
(LTV) ratios for lending at 80% and 90%, it said following a
board meeting on financial stability issues.
    "In an environment of significant macro-financial
uncertainties, the risk of a major decline in property prices
persists, necessitating continued application of the LTV ratio,"
bank board member Karina Kubelkova said in a statement.
    The bank also discussed a new financial stability report at
its meeting, and it said stress tests demonstrated the Czech
financial sector remained resilient to adverse economic
developments.
    The banking sector as a whole would comply with regulatory
capital requirements in both baseline and adverse scenarios, it
said.
    

 (Reporting by Jason Hovet)
 ((jason.hovet@thomsonreuters.com;))