PRAGUE, March 16 (Reuters) - The Czech National Bank (CNB) kept its countercyclical capital buffer for banks at 1.25 percent on Friday after raising it during its last quarterly review to keep a handle on fast lending growth.
The central bank has raised the buffer twice since first setting a rate of 0.5 percent at the end of 2015, which came into effect in 2017, to get ahead of a credit boom amid record low interest rates.
The Czech Republic is one of a handful of European countries where banks face this buffer charge. The central bank has said it was ready to raise the rate further if needed.
Komercni Banka, the country’s third largest lender, said last month it was expecting a gradual rise given the economic cycle.
The Czech economy grew 4.5 percent in 2017, boosted in large part by domestic demand. (Reporting by Jason Hovet)
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