The Dutch Central Bank (DNB) published a news release stating to maintain the 2% countercyclical capital buffer (CCyB) unchanged, as no substantial changes in the risk environment appeared.
The CCyB aims to enhance banks‘ resilience during economic downturns and facilitate lending to support the real economy and applies to domestic exposures, with a reciprocity requirement for foreign banks with exposures in the Netherlands.
On 31 May 2023, an increase in the CCyB to 2% was announced, requiring banks with loans in the Netherlands to comply by 31 May 2024, please also note eventid=23430.
The decision aligns with a framework targeting a 2% CCyB in a standard risk environment, determined through various indicators. The Spring 2023 Financial Stability Report provides a detailed rationale for the chosen 2% CCyB, and there is currently no reason to reconsider the increase based on financial stability risks.