MNB aims to reduce maturity mismatch of forint loans and forint liabilities

MNB

The National Bank of Hungary (MNB) wants to reduce the maturity mismatch between the bank sectorʼs forint loans and forint liabilities, MNB managing director Marton Nagy said at a conference in Budapest yesterday.

The maturity mismatch will drastically increase in the Hungarian bank sector as the volume of long-term forint assets substantially increases due to the forint conversion of foreign currency loans, Nagy said.

Therefore, the central bank plans to prescribe for members of the Hungarian bank sector the issue of a certain amount of mortgage bonds in order to reduce the maturity mismatch, Nagy added.

Nagy said the forint conversion affects loans worth a combined HUF 3 trillion, and Hungarian banks would have to issue mortgage bonds worth about 15% of this or HUF 450 bln in the medium term.

The European Central Bank is assessing the plan, he said.

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