Budapest, 6 December 2023 – The capital buffers of domestic systemically important institutions will be fully rebuilt from January 2024 completing the phasing in along the path previously envisaged. Increasing the buffers contributes to safeguarding long-term financial stability amidst the turbulent economic environment; the graduality of reimposing the buffers supports maintaining bank lending to the real economy.
In 2023, the Magyar Nemzeti Bank (MNB) identified seven banking groups as systemically important based on end-2022 data, these institutions are the same as last year.
From 2022 lasting until 2024, the MNB has commenced the gradual reinstatement of the capital buffers required for Other Systemically Important Institutions (O-SII), which had been released due to the extraordinary economic conditions resulting from the coronavirus epidemic. The MNB has assessed the capital position of systemically important banks as sufficient to prescribe the buffers along the path envisaged earlier from 2024 onwards. Accordingly, in 2024, the transitional buffer rates will increase by one half of the target values thus reaching the final rates of the phase-in period. The reintroduction in full of the capital buffers further strengthens the loss-absorbing capacity, which is a paramount regulatory objective amid the current economic environment burdened with risks. The MNB will modify the final buffer rates if material future changes in the systemic importance of the credit institutions necessitate adjustments during the annual revisions.
Detailed information on the identification of systemically important institutions
Magyar Nemzeti Bank