Financial Stability

Countercyclical Capital Buffer

The countercyclical capital buffer (CCyB) is a CRD IV 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 2013/36/EU, 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 second quarter of 2020.

Notification 

  • The applicable countercyclical capital buffer rate: 0%
  • The relevant credit-to-GDP ratio: 74.7% and its deviation from the long-term trend: -17.1 percentage points
  • The buffer guide: 0%

Note on Countercyclical Capital Buffer Methodology

Quarterly Indicators and assessments for the countercyclical capital buffer rate

CCB assessment for 2020Q2                     Chart pack for 2020Q2

CCB assessment for 2020Q1                     Chart pack for 2020Q1 

CCB assessment for 2019Q4                     Chart pack for 2019Q4 

CCB assessment for 2019Q3                     Chart pack for 2019Q3

CCB assessment for 2019Q2
                     Chart pack for 2019Q2

CCB assessment for 2019Q1                     Chart pack for 2019Q1

CCB assessment for 2018Q4                     Chart pack for 2018Q4 

CCB assessment for 2018Q3                     Chart pack for 2018Q3

CCB assessment for 2018Q2                     Chart pack for 2018Q2

CCB assessment for 2018Q1                     Chart pack for 2018Q1

CCB assessment for 2017Q4                     Chart pack for 2017Q4

CCB assessment for 2017Q3                     Chart pack for 2017Q3

CCB assessment for 2017Q2                     Chart pack for 2017Q2

CCB assessment for 2017Q1                     Chart pack for 2017Q1

CCB assessment for 2016Q4                     Chart pack for 2016Q4

CCB assessment for 2016Q3                     Chart pack for 2016Q3

CCB assessment for 2016Q2                     Chart pack for 2016Q2

CCB assessment for 2016Q1                     Chart pack for 2016Q1