site.btaBulgaria's Central Bank Keeps Countercyclical Capital Buffer Rate for Banks at 2%

The Bulgarian National Bank (BNB) announced Friday that it has decided to keep the countercyclical capital buffer for banks at 2.0% for the last quarter of 2026. This buffer helps banks stay safe during economic ups and downs.

They looked at several factors, including the amount of loans compared to the economy’s size (credit-to-GDP ratio), which is currently lower than usual. They also considered other signs like credit growth, borrowing levels, the housing market, and the overall economic outlook.

Loans to businesses and households grew in mid-2025, supported by good job numbers and stable interest rates. However, there are still risks from global uncertainties like trade issues and geopolitical conflicts, which could affect the economy and banks.

If problems arise and borrowers can’t repay loans, banks might face losses that hurt their profits and capital. The buffer helps banks stay strong enough to handle such risks.

BNB also reviews lending rules to keep credit safe, especially for home loans, and recent checks show these rules are helping reduce risky lending.

Keeping the buffer at 2% in late 2026 will support banks’ financial health and their ability to manage potential risks.