MNBʼs Financial Stability Board restricts dividend payments

Competition

The Financial Stability Board of the National Bank of Hungary (MNB) has adopted a comprehensive package of measures to mitigate the effects of the crisis on the financial intermediary sector, the central bank said on its website, reports adozona.hu.

The package reduces the administrative burden on banks and allows for flexible management of macro and micro prudential rules.

This will help to overcome the expected temporary difficulties and maintain the lending capacity of the banking system.

The latter will also be strengthened by temporary restrictions on dividend payments and tightening of regulatory limits on foreign currency financing, the MNB statement states.

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.

Support the BBJ

Startups