The MNB required eight “Other Systemically Important Institutions” – institutions that, due to their systemic importance, are more likely to create risks to financial stability – to introduce systemic risk buffers from this year. The capital buffer rates, which range from 0.125% to 2%, will gradually increase until 2020.
For this year, the capital buffer rate is set at 0.5% for OTP Bank, Hungaryʼs biggest commercial lender. The rate will rise to 1% in 2018, 1.5% in 2019, and 2% in 2020.
For UniCredit Bank Hungary and K&H Bank, the rates are set at 0.25% for this year, rising to 0.5% in 2018, 0.75% in 2019, and 1% in 2020.
For the other five affected lenders, TakarékBank, Raiffeisen Bank, Erste Bank, CIB Bank, and MKB Bank, the rates are set at 0.125% for this year, 0.25% for 2018, 0.375% for 2019, and 0.5% for 2020.
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