MNB to keep countercyclical capital buffer at zero to prop up lending
The National Bank of Hungary (MNB) will maintain the countercyclical capital buffer (CCB) rate at zero thereby supporting lending growth, the central bank said yesterday after its Financial Stability Council reviewed the rate, Hungarian news agency MTI reported.
The Financial Stability Council decided to leave the rate unchanged after it found no traces of excess lending in the domestic banking system.
No change is expected in the rate over the next twelve months, which will aid the increase of banksʼ lending activity, the central bank said.
The MNB introduced the CCB on January 1. It reviews the rate, which is applicable to domestic exposures, quarterly.
Member countriesʼ designated authorities have to notify the European Systemic Risk Board, which is part of the European System of Financial Supervision, of each quarterly setting of the CCB rates.
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