The National Bank of Belgium (NBB) will maintain a countercyclical capital buffer of €2.7 billion in the fourth quarter to help banks withstand potential credit losses, the central bank announced on Friday.
The NBB cited "great uncertainty" stemming from recent geopolitical developments and rising tariffs as the reason for maintaining this level of reserves.
It reassured that the Belgian financial sector remains "financially solid," but warned that "the solvency of certain economic sectors could deteriorate in the event of a significant slowdown in growth, following a trade war or other geopolitical shocks."
The bank highlighted the property sector as one of the areas still facing challenges due to the substantial increase in interest rates since early 2022.
Belgian banks are the primary external creditors of Belgian households and businesses, with outstanding loans to these sectors amounting to €304 billion and €189 billion respectively.
The countercyclical capital buffer is reviewed every quarter.
