MNB: Rules mitigating mortgage financing mismatch take effect October 2016

MNB

The National Bank of Hungary (MNB) announced yesterday that it will require lenders to back at least 15% of their net mortgage loans with long-term liabilities from October 1, 2016.

The MNB earlier announced plans to introduce the 15% Mortgage Loan Financing Adequacy Ratio to mitigate the mismatch in maturities of forint mortgages, which have runs of ten years or more, as well as the banking sectorʼs forint liabilities, which typically mature within one year.

The central bank estimated that meeting the threshold would require banks to issue HUF 279 bln of new mortgage bonds.

The MNB decree on the Mortgage Loan Financing Adequacy Ratio is expected to be published in the official gazette Magyar Közlöny later this month.

ADVERTISEMENT

Poles Save on Education as Inflation Puts Pressure, Report Analysis

Poles Save on Education as Inflation Puts Pressure, Report

Gov't Clears HUF 200 bln Aid for SMEs in Energy-Intensive Ma... Government

Gov't Clears HUF 200 bln Aid for SMEs in Energy-Intensive Ma...

Róbert Ésik Joins EY as Partner Appointments

Róbert Ésik Joins EY as Partner

Teachers' Strike Demonstration Attracts Thousands in Capital City

Teachers' Strike Demonstration Attracts Thousands in Capital

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.