MNB leaves countercyclical capital buffer rate at 0%

MNB

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The National Bank of Hungary (MNB) has left the rate of its countercyclical capital buffer, established last year to mitigate the impact of future financial crises, at 0%, according to Hungarian news agency MTI.

“There is no substantive change in the level and dynamics of cyclical systemic risks compared to the previous quarterly review despite the favorable processes observable in the credit market,” the MNB said in a statement yesterday.

“Foreseeably no change is expected over the forthcoming one-year horizon, which may support domestic lending activity of credit institutions,” the central bank added.

The countercyclical capital buffer is set at 0-2.5% of total risk-weighted assets each quarter by an MNB decree.

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