Portugal: Financial Sector Assessment Program-Technical Note on Systemic Risk Monitoring and Macroprudential Policy

Banco do Portugal (BdP), as the designated macroprudential authority in Portugal, has developed a full-fledged macroprudential toolkit. The toolkit has been progressively strengthened, most recently with the activation, in January 2026, of a countercyclical capital buffer (CCyB) set at a positive cycle-neutral (PCN) target rate of 0.75 percent—aligning Portugal more closely with EU-wide practice. Since 2023, the toolkit also includes a sectoral systemic risk buffer (sSyRB) targeting residential real estate (RRE) risks. Borrower-based measures, including LTV and DSTI limits, have been in place since 2018 as recommendations for banks. BdP has also enhanced its risk monitoring framework and macroprudential communication mechanisms in recent years.