Budapest, 29 September 2023 – With regard to the housing and credit market risk developments, the Financial Stability Board of the MNB has not modified the level and the timing of the 0.5 percent countercyclical capital buffer rate activation from 1 July 2024.
The Financial Stability Board (FSB) of the Magyar Nemzeti Bank (MNB) maintains the countercyclical capital buffer (CCyB) rate of 0.5 percent applicable to domestic exposures effective from 1 July 2024, as of 1 October 2024. Until 1 July 2024, the 0-percent rate remains applicable to domestic exposures.
During the rate review in June 2022 , the FSB decided to increase the CCyB rate applicable to domestic exposures to 0.5 percent for the first time since 2016. During the rate review in June 2023, in view of the easing of cyclical systemic risks and those associated with housing market overvaluation, the FSB postponed the activation by one year to 1 July 2024.
In the last quarter cyclical and housing market risks have continued to ease, which may continue in the short term as well. In the medium term, however, the recovery of the economic activity and the return of real wage growth might point to the return of increasing cyclical risks. Thus, no change is justified in the schedule of the countercyclical capital buffer build-up.
The MNB will continue to continuously monitor systemic risks in the banking sector and prescribe the maintenance of additional capital buffer requirements depending on their development.
Magyar Nemzeti Bank