The Bulgarian National Bank (BNB) maintained the countercyclical capital buffer rate applicable to credit risk exposures in Bulgaria at 2.0% as of Q4’25, the same as in the rest of 2025 and the current one. The credit-to-GDP ratio amounts to 77.1% at the end of Q2’24. Its deviation from the long-term trend is negative (-26.8 p.p.), which corresponds to zero value of the reference indicator for the countercyclical buffer. The regulator noted that the deviation of the credit-to-GDP ratio from its long-term trend does not adequately reflect the intensity of cyclical risks and took into account additional indicators, focused on the credit market, the indebtedness, the real estate market and the general economic environment. The bank regulator noted that lending activity has remained elevated, in particular in the segment of loans to households. “Some indicators are signalling potential accumulation of medium-term risks for the banking system (accelerating credit growth, price developments in the house market, increasing average size of loans, areas of vulnerabilities related to the loans in intervals with relatively higher ratio between the loan amount and the value of the immovable property, and with relatively higher debt service-to-income and indebtedness of borrowers)”. Recall, that in light of this, BNB has tightened the requirements to lending standards for loans secured by residential real estate in effect from 1 October 2024.