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Financials

Irish central bank to leave counter cyclical capital buffer at 0% for 2021

DUBLIN, Nov 26 (Reuters) - Ireland’s central bank intends to keep the amount of capital banks must set aside as extra protection against risks from future crises at zero to continue to support the economy through the coronavirus pandemic, it said on Wednesday.

The bank cut the counter cyclical capital buffer (CCyB) to 0% from 1% in April. It also said on Wednesday that while the motivation of adding an extra layer of capital requirement - the so-called systemic risk buffer - remains relevant, it does not currently intend to begin phasing that in during 2021.

The central bank will also leave its mortgage-lending limits unchanged for the third straight year in 2021, saying the caps on how much banks can lend continued to meet their objectives and meant the financial system was better prepared for the COVID-19 shock compared to previous crises. (Reporting by Padraic Halpin; Editing by Jon Boyle)

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