Narodowy Bank Polski

Countercyclical buffer

Applicable countercyclical buffer rate

According to Articles 83 and 96 of the Act of 5 August 2015 on Macroprudential Supervision over the Financial System and Crisis Management, since 1 January 2016, a countercyclical buffer rate has been set at 0% for credit exposures on the territory of the Republic of Poland. This rate shall apply until it is changed by a regulation of the Minister of Finance.

Applicable countercyclical buffer rate Applicable from
0% 1 January 2016

Information on the recommendation of the Financial Stability Committee in the area of macroprudential supervision (FSC-M) on countercyclical buffer rate

Date of the FSC-M meeting Recommended countercyclical buffer rate Buffer guide Credit to GDP ratio1 Ratio of deviation of credit to GDP ratio from its long-term trend
22 February 2016 0% 0% 83.9% 0.05%
13 May 2016 0% 0% 83.1% -1.46%
10 August 2016 0% 0% 84.0% -1.30%
5 December 2016 0% 0% 85.0% -1.10%
24 March 2017 0% 0% 84.4% -2.2%
2 June 2017 0% 0% 86.6% -0.7%
15 September 2017 0% 0% 85.7% -2.4%
1 December 2017 0% 0% 84.5% -4.0%
16 March 2018 0% 0% 83,1% -5,8%
11 June 2018 0% 0% 81,3% -7,8%
21 September 2018 0% 0% 82,0% -7,3%
17 December 2018 0% 0% 82,5% -7,2%
29 March 2019 0% 0% 81,5% -8,3%
7 June 2019 0% 0% 80,7% -9,4%

1 Loans to the non-financial private sector represent the total indebtedness of the non-financial sector, including issuance of debt instruments by non-financial enterprises.

According to Article 26 of the Act of 5 August 2015 on Macroprudential Supervision over the Financial System and Crisis Management, in order to calculate the institution-specific countercyclical buffer, the institution shall apply the countercyclical buffer rate for a Member State other than the Republic of Poland or a third country at the level set by the authority competent for macroprudential supervision of that Member State or that third country, if the rate does not exceed 2.5%.

Applicable countercyclical buffer rates in other EU Member States

Applicable countercyclical buffer rates in Basel Committee on Banking Supervision member jurisdictions

According to the ESRB Recommendation on recognising and setting countercyclical buffer rates for exposures to third countries (ESRB/2015/1) national designated authorities are recommended to identify material third countries on an annual basis and to submit to the ESRB a list of such material third countries by the end of the second quarter of each year.

10 August 2016
The Financial Stability Committee guided by the methodology included in the ESRB Decision on the assessment of materiality of third countries for the Union’s banking system in relation to the recognition and setting of countercyclical buffer rates (ESRB/2015/3) has not identified any material third country to the Polish banking system.

2 June 2017
The Financial Stability Committee has made an annual assessment verification of the material third countries for domestic banking system and has not identified any material third country to the Polish banking system.

11 June 2018
The Financial Stability Committee has made an assessment verification of the material third countries for domestic banking system and has not identified any material third country to the Polish banking system.

7 June 2019
The Financial Stability Committee has made an assessment verification of the material third countries for domestic banking system and has not identified any material third country to the Polish banking system.

The countercyclical buffer is a macroprudential instrument the purpose of which is to alleviate cyclical fluctuations of credit in the economy and the consequences of such fluctuations.

During the upswing phase of the financial cycle, when credit grows excessively, imposing a countercyclical buffer as an additional capital requirement is aimed at the following:

  1. constraining an increase in imbalances in the banking system stemming from excessive lending, the further growth of which might result in significant imbalances on the assets market financed by excessive credit, thereby increasing the probability of a financial crisis,
  2. reinforcing banks’ resilience to a credit crunch by increasing banks’ capital base, thereby during the downturn phase when credit losses materialize, banks would not be forced to cut the amount of lending significantly, which in fact may facilitate exit from a recession.

During the downturn phase of the financial cycle it is possible to decrease, formerly set, the level of the countercyclical buffer. The purpose of such an action is to counteract an excessive contraction in the supply of lending to the economy.

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