Maintaining confidence among domestic banks and ensuring that their liquidity management is functioning smoothly, as in the past, are of key importance for the Magyar Nemzeti Bank. In order to support banks’ liquidity management, the Monetary Council took decisions to introduce two loan tender facilities at its meetings on 16 and 20 October 2008.
The Bank’s standing two-week, collateralised loan tender facility, with a fixed interest rate 25 basis points above the central bank base rate, will be available once a week for all credit institutions meeting the technical requirements set by the Bank.
At the six-month, variable-rate collateralised loan tenders, eligible counterparties of the MNB will be invited to submit competitive bids for pre-specified allotment amounts.
The tenders will be held once a week. The Bank will announce the first tender on 21 October 2008.
The Magyar Nemzeti Bank will use the tools at its disposal to contribute to maintaining the stability of the Hungarian banking sector.
MAGYAR NEMZETI BANK
Notice on the MNB’s two-week, fixed-rate collateralised loan tender
Notice on the MNB’s six-month, variable-rate collateralised loan tender