PRAGUE (Reuters) – Slovakia’s central bank cut the countercyclical capital buffer rate to 1.00%, from 1.50%, with effect from Aug. 1, as it sought to give banks enough capital for lending and preparing for bad loan provisioning, it said on Monday.
Slovakia was among only a handful of European states requiring bank’s maintain the extra buffer, designed to safeguard against economic swings, going into the coronavirus crisis.
The central bank said the current level was enough of a reserve against potential losses although it was ready to lower the buffer rate further if needed.
(Reporting by Jason Hovet, editing by Louise Heavens)
