Countercyclical capital buffer is intended to protect banks from risk arising from the changes in the credit cycle. This capital buffer is introduced or increased in periods of significant credit growth, and is reduced or removed in the periods when the credit cycle will change. Namely, given the high credit growth, an obligation for banks to increase the available capital is introduced. Such obligation, on the one hand improves banks' ability to cover credit losses which might arise from the high credit growth, and on the other reduces that growth, by increasing the credit costs. Amid cycle changes, the banks are released from the obligation to fulfill countercyclical capital buffer, which implies that they can use this capital buffer to cover credit losses which usually occur in the downward cycle phase, and at the same time the credit costs are reduced, which affects the volume of the credit demand. With this feature, the countercyclical capital buffer reduces the so-called procyclicality of the financial system.

The level of the countercyclical capital buffer is defined based on the so-called specific rate of the countercyclical capital buffer, which represents weighted average of the countercyclical capital buffer rates for banks' exposures to individual countries. Namely, pursuant to the Banking Law, the National Bank is authorized to prescribe different rates of countercyclical capital buffer for exposures to clients from different countries, including the Republic of North Macedonia. 

The manner of determining the rate of countercyclical capital buffer for banks' exposures to clients from the Republic of North Macedonia and the specific rate of the countercyclical capital buffer, as well as the manner of introducing and changing the rate of the countercyclical capital buffer for banks’ exposures to clients from the Republic of North Macedonia are specified in the Decision on the Methodology for Determining the Rate of the Countercyclical Capital Buffer for Exposures in the Republic of North Macedonia (Official Gazette of the Republic of Macedonia No. 26/17 and Official Gazette of the Republic of North Macedonia No. 98/21 and 149/21). 

On a quarterly basis, the National Bank determines whether there is a need not to introduce, to introduce, to reduce or to release the countercyclical capital buffer for exposures in the Republic of North Macedonia, on the basis of which it adopts a Decision on the rate of countercyclical capital buffer for exposures in the Republic of North Macedonia. The National Bank publishes on its web site the rate of countercyclical capital buffer, together with the date of application, for exposures in the Republic of North Macedonia and for exposures to other countries.

Decisions on the rate of the countercyclical capital buffer for exposures in the Republic of North Macedonia and for exposures to other countries 

Historical review of the rates of countercyclical capital buffer  (last updated on 22.04.2025)

Review of the rates of countercyclical capital buffer in the member states of the Basel Committee on Banking Supervision 

Review of the rates of countercyclical capital buffer in the member states of the European Systemic Risk Board 

Review of the rates of countercyclical capital buffer in the countries of Western Balkans  (last updated on 22.04.2025)