MNB maintains schedule of systemic risk buffer increases
The Financial Stability Board of the National Bank of Hungary (MNB) has decided at an annual review to leave the schedule for increased capital buffer requirements for the countryʼs biggest lenders unchanged, the central bank said late Monday, as reported by state news agency MTI.
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.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.