MNB Moves Forward With Phase-in of Capital Buffer Rates

MNB

The National Bank of Hungary (MNB) has announced it is moving forward as planned with a phase-in of capital buffers for "systemically important" banking groups, according to a release on its website.

The central bank and financial market watchdog noted that it had lifted capital buffer requirements for systemically important credit institutions from July 1, 2020, because of the extraordinary circumstances caused by the coronavirus pandemic, but started rebuilding the requirements gradually from 2022.

In 2022 and 2023, the transitional buffer rates increased by one-quarter of the final rates, and from 2024 onwards, the MNB expects compliance with the final buffer rates.

Following its assessment in 2023, the MNB deemed the capital position and lending activity of systemically significant banks sufficient to complete the phase-in of the buffers along the path envisaged in 2020.

"The [MNB] will modify the final buffer rates if material future changes in the systemic importance of the credit institutions necessitate adjustments during the annual revisions," the central bank said.

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