December 7 (SeeNews) - Slovenia's central bank lifted the countercyclical capital buffer (CCyB) to 0.5% from 0.0% to shield the local financial system from arising systemic risks, it said on Wednesday.
"Banka Slovenije finds systemic risks to be increasing in the Slovenian banking system, as a result of the growing uncertainty in the economic environment," the central bank said in a statement.
Slovenian banks will be able to cover the buffer requirement for exposures to the domestic economy within 12 months with their existing capital, the central bank said.
The central bank decided to prevent the build-up of cyclical risks in their early phase, as the financial stability is threatened by the downturn in the economy and persistent high inflation, it noted.
Banks will have to maintain a higher capital adequacy to meet thecountercyclical capital buffer requirements, which will increase the resilience of the banking system, the central bank added.