Insights Blog

The Central Bank has confirmed that the countercyclical capital buffer (CCyB) rate on Irish exposures is to be kept at 1%.  As previously signposted, the Central Bank still plans to annouce a 1.5% CCyB rate by mid-2023, but is keeping that under review in light of macrofinancial developments and has the ability to release or reduce the CCyB to facilitate bank lending to the economy if it feels that the macrofinancial environment warrants that.  

As mentioned in our June 2022 update, to reduce complexity the Central Bank now relies on the CCyB as its primary macroprudential capital tool (rather than on a combination of the CCyB and the systemic risk buffer).