The Countercyclical Capital Buffer (CCyB) rate for the third quarter of 2019 has been set at zero per cent

Summary

Based on the analysis of the reference indicators, the Bank of Italy has decided to keep the countercyclical capital buffer rate at zero for the third quarter of 2019.
Specifically:

• In the first quarter of 2019 the deviation of the credit-to-GDP ratio from its long-term trend (the credit-to-GDP gap), calculated using the standard methodology set by the Basel Committee on Banking Supervision, was about -16 percentage points. According to the methodology developed by the Bank of Italy, which takes into account the specific features of Italy's credit cycle, the gap was about -10 percentage points. Similar findings emerge from the analysis of the total credit-to-GDP gap.

• The Italian economy's macro-financial conditions remain generally weak. The unemployment rate is still high. Bank credit to the private sector remain positive, though  business lending has fallen. Although the stock of non-performing loans (both gross and net of write-downs) in proportion to the total is falling sharply, it remains high for firms. Real property prices have decreased further and are still well below their long-term level.