Since January 2016, DNB publishes the CCyB add-on on a quarterly basis, in accordance with the prevailing rules and regulations. Banks are required to apply the add-on to their exposures to Dutch counterparties. As a rule, CCyB decisions are internationally recognised instruments, which means that non-domestic banks must apply the add-on set by DNB to their Dutch exposures.
At the last decision in September 2020, DNB left the CCyB unchanged at 0 percent. One of the main considerations underlying this decision has been the subdued trend of credit growth. This situation has not fundamentally changed: lending is still showing below-trend growth (Chart 1). This credit gap, as it is known, is internationally considered as one of the key indicators for the CCyB. Besides the credit gap, DNB closely monitors other variables as well, such as trends in real estate prices and credit growth in subsectors (Table 1).
Further, in view of the current uncertainty we see no grounds at this stage to activate the CCyB. More information with regards to this decision can be found in our most recent Financial Stability Report (FSR).
In this light DNB has decided to leave the CCyB unchanged at 0%. DNB intends to build up a CCyB of 2% in the foreseeable future. Additional information about this intention can be found here.