MNB keeps countercyclical capital buffer at zero to prop lending
The National Bank of Hungary (MNB) has decided to maintain the countercyclical capital buffer (CCyB) at zero in order to support lending growth, after its Financial Stability Board reviewed the rate, the central bank announced Monday, according to Hungarian news agency MTI.
The CCyB is designed to help counter procyclicality in the financial system. The rate has been zero since its introduction on January 1, 2016. The MNB reviews the rate, which is applicable to domestic exposures, on a quarterly basis.
The Financial Stability Board said cyclical systemic risks remained low and it had not detected any significant change in the level or dynamics of systemic risks.
No change is expected in the rate over the next twelve months, which could aid the increase in commercial banksʼ domestic lending activity, the MNB said.
Member countriesʼ designated authorities have to notify the European Systemic Risk Board, which is part of the European System of Financial Supervision, of each quarterly setting of CCyB rates.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.