MNB adopts further anti-cyclical easing measures

Telco

Photo by Adriana Iacob/Shutterstock.com

The Financial Stability Council (FSC) of the National Bank of Hungary (MNB) decided on Thursday that it will adopt further prudential easing measures, namely allowing financial institutions to temporarily breach its capital conservation buffer rate to help combat the economic effects of the coronavirus outbreak, according to a report by Hungarian news agency MTI.

Photo by Adriana Iacob/Shutterstock.com

The temporary easing of the capital conservation buffer (CCoB) limits "frees up" nearly HUF 700 billion of funds for financial institutions and could increase their lending capacity by up to more than HUF 5 trillion.

MNB also modified rules regulating down payments for retail mortgage loans, allowing banks to make less thorough background checks. 

The central bank is also giving directions to ease criteria for the valuation of commercial real estate to diminish the need for personal administration when applying for mortgage loans and to speed up the processing of loan requests.

For valuation procedures of non-residential commercial properties, simpler procedures than before are acceptable instead of conducting a comprehensive on-site inspection. For example for a new valuation, an external on-site inspection is an appropriate solution from now.

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