Budapest, 28 March 2024 – In view of the level of cyclical risks and the development of housing and credit market risks, the Financial Stability Board of the MNB in its March 2024 decision did not change the level of the countercyclical capital buffer rate, which will be activated at the level of 0.5 percent from 1 July 2024.

The Magyar Nemzeti Bank (MNB) maintains the 0.5 percent countercyclical capital buffer (CCyB) rate effective from 1 July 2024 for domestic exposures, as of 1 April 2025. Until 1 July 2024, the 0 percent rate remains applicable to domestic exposures.

During the rate review in June 2022 , the MNB 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 MNB postponed the activation by one year to 1 July 2024.

Due to the increased geopolitical risks and the strict monetary conditions still maintained to permanently curb inflation, the uncertain growth prospects, as well as the continued restrained lending, the cyclical risks of lending and the real estate market did not increase in the last quarter either. In the longer term, however, the gradual recovery of economic activity, the return of real wage growth, and the resurgence of lending may lead to a further increase in cyclical risks. The strong capital position and the profitability of banks also support the activation of the capital buffer; therefore, the activation could increase shock resilience without limiting the banks’ lending capacity. Based on these factors, the Financial Stability Board decided that it is justified to keep the countercyclical capital buffer rate at 0 percent from 1 April 2024, and for the time being not to change the schedule for the capital buffer build-up starting on 1 July 2024 at a rate of 0.5 percent for domestic exposures.

The MNB will keep on continuously monitoring systemic risks in the banking sector and, depending on their development, will decide on the maintenance of capital buffer requirements on a quarterly basis.

Information on the countercyclical capital buffer, as well as other information related to its operation

Magyar Nemzeti Bank