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MNB maintains schedule of systemic risk buffer increases

The Financial Stability Board of the National Bank of Hungary (MNB) has decided at an annual review to leave the schedule for increased capital buffer requirements for the countryʼs biggest lenders unchanged, the central bank said late Monday, as reported by state news agency MTI.

The MNB required eight "Other Systemically Important Institutions" - institutions that, due to their systemic importance, are more likely to create risks to financial stability - to introduce systemic risk buffers from this year. The capital buffer rates, which range from 0.125% to 2%, will gradually increase until 2020.

For this year, the capital buffer rate is set at 0.5% for OTP Bank, Hungaryʼs biggest commercial lender. The rate will rise to 1% in 2018, 1.5% in 2019, and 2% in 2020. 

For UniCredit Bank Hungary and K&H Bank, the rates are set at 0.25% for this year, rising to 0.5% in 2018, 0.75% in 2019, and 1% in 2020.

For the other five affected lenders, TakarékBank, Raiffeisen Bank, Erste Bank, CIB Bank, and MKB Bank, the rates are set at 0.125% for this year, 0.25% for 2018, 0.375% for 2019, and 0.5% for 2020.