The rate of protective capital in Serbia is now zero percent

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The Executive Board of the National Bank of Serbia (NBS) decided to keep the rate of the countercyclical protective layer of capital for Serbia at zero percent, in order to support the credit activity of banks and mitigate the negative consequences of the pandemic on financing the economy and population, the central bank announced today.
Within its competence to determine measures and activities for preserving and strengthening the stability of the financial system, and based on the Decision on capital adequacy of the bank, the NBS calculates a reference indicator on a quarterly basis based on which it determines the rate of countercyclical capital buffer for Serbia.
The calculation of the reference indicator is based on the deviation of the mutual ratio of total loans and gross domestic product from its long-term trend.
Based on data from March 2020, the share of total loans in gross domestic product was 78.7 percent, while the estimated value of the deviation of this share was -4.2 percentage points, which, although indicating a growth trend, is still below its long-term trend, the statement said, Dnevnik reports.