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 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 last quarter of 2021.

Notification 

  • The applicable countercyclical capital buffer rate: 0%
  • The relevant credit-to-GDP ratio: 83.2% and its deviation from the long-term trend: -2.4 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 2021Q4 Chart pack for 2021Q4
CCB assessment for 2021Q3 Chart pack for 2021Q3
CCB assessment for 2021Q2 Chart pack for 2021Q2
CCB assessment for 2021Q1 Chart pack for 2021Q1

Previous quarterly indicators and assessments for the countercyclical capital buffer rate

Date last updated: 30 September 2021