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In view of the expected effects of the coronavirus epidemic, the National Bank of Hungary (MNB) may maintain its countercyclical capital buffer rate at 0% in the longer-term, the central bank has published on its website.
The purpose of the countercyclical capital buffer is to increase the stability and resilience of the financial intermediary system across credit cycles.
It provides extra capital reserves in the event of a financial crisis that can be used by credit institutions to cover potential losses and to maintain their lending activity, the MNB explains.