The Bank of Portugal has confirmed that the countercyclical capital buffer rate will remain at 0% of the total risk exposure amount as of 1 April 2025, and will increase to 0.75% from 1 January 2026. The decision was taken by the Board of Directors following consultation of the National Council of Financial Supervisors. The rate applies to all credit risk exposures where the counterparty is the domestic private non-financial sector, for credit institutions and investment firms in Portugal supervised by the Bank of Portugal or the European Central Bank under the Single Supervisory Mechanism. The buffer rate is reviewed quarterly, and the decision is published on the Bank of Portugal’s website together with the underlying analysis, indicators and methodological document, alongside information on countercyclical buffer rates applicable to exposures to European Union and European Economic Area member states.
Bank of Portugal 2025-03-31
Bank of Portugal keeps countercyclical capital buffer at 0% from April 2025 and sets 0.75% rate from January 2026
The Bank of Portugal will maintain the countercyclical capital buffer rate at 0% until 1 April 2025, increasing it to 0.75% from 1 January 2026. This decision, affecting credit institutions and investment firms in Portugal, follows consultation with the National Council of Financial Supervisors. The buffer rate is reviewed quarterly, with details published on the Bank's website.