Central Banks tells lenders to boost reserves

Central Banks tells lenders to boost reserves
The Central Bank has ordered banks to hold more money in reserve against their exposure to Irish assets. Pic: RollingNews

The bank has raised the so-called countercyclical capital buffer (CCyB) from 0 to 1%, a move aimed at preventing lending growth from getting out of control.

The Central Bank has ordered banks to hold more money in reserve against their exposure to Irish assets in a bid to prevent an economic shock.

The bank has raised the so-called countercyclical capital buffer (CCyB) from 0 to 1%, a move aimed at preventing lending growth from getting out of control. The buffer acts by requiring more capital to be built up during periods of economic stability, allowing credit to be released in any downturn.

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