As part of its measures to alleviate the effects of the global economic crisis, and based on the best European practices, the NBS is in the process of introducing important innovations into almost all aspects of its operations: 1. Discounting of a) securities, b) government receivables c) mortgage loans to secure additional liquidity to the banking sector.
For example, countercyclical capital buffers (CCBs) are to be introduced, as stipulated in the Basel III requirements. They aim to limit financial institutions’ excessive risk taking by requiring an increase in their capital at the time of credit expansion. They also are expected to function as a buffer when losses are actually incurred.