Financial Stability

Countercyclical Capital Buffer

The countercyclical capital buffer (CCyB) is a CRD instrument, transposed in Central Bank of Malta Directive No. 11 "Macro-prudential Policy", which requires credit institutions to set aside additional Common Equity Tier 1 capital during periods of excessive credit growth. The aim of the CCyB is to increase the banks' resilience in good times to absorb potential losses that could arise in a downturn and to support the continued supply of credit to the real economy.

In accordance with Article 136(7) of EU Directive 2019/878, transposed in Central Bank of Malta Directive No. 11, the Central Bank of Malta shall announce the setting of the countercyclical capital buffer rate based on a quarterly assessment of the risks due to excessive credit growth.

The Central Bank of Malta is hereby notifying its decision on the CCyB rate for the first quarter of 2025.

Notification 

  • The applicable countercyclical capital buffer rate: 0%
  • The relevant credit-to-GDP ratio: 64.0% and its deviation from the long-term trend: -4.3 percentage points
  • The buffer guide: 0%

Note on Countercyclical Capital Buffer Methodology

Quarterly Indicators and assessments for the countercyclical capital buffer rate

CCyB assessment for 2025Q1 Chart pack for 2025Q1
CCyB assessment for 2024Q4 Chart pack for 2024Q4
CCyB assessment for 2024Q3 Chart pack for 2024Q3
CCyB assessment for 2024Q2 Chart pack for 2024Q2
CCyB assessment for 2024Q1 Chart pack for 2024Q1

Previous quarterly indicators and assessments for the countercyclical capital buffer rate

2025 2024 2023 2022 2021
2020 2019 2018 2017 2016

Date last updated: 31 December 2024