MNB to keep 0% countercyclical capital buffer rate
Image by Jessica Fejos
The National Bank of Hungary (MNB) determined that it will keep the existing level of a 0% countercyclical capital buffer with a view of supporting lending, according to a post on MNB’s website.
MNB’s conclusion found that the low level of cyclical systematic risks do not warrant a raising of the buffer rate.
Countercyclical capital buffer rates are intended to improve the stability and resilience of financial intermediary systems across credit cycles, and guarantee the sustainable contribution to economic growth of financial systems, according to MNB’s statement.
MNB revises the capital buffer rate quarterly, after analyzing the state of financial stability, in line with EU and national regulations, the post continued.
Currently, there are no recent changes in the level and dynamics of cyclical systematic risks, according to MNB. The bank concluded that no changes are to be expected during the upcoming review.
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