MNB supports resilience of most significant domestic credit institutions (O-SII banks) by maintaining their capital buffers next year

Budapest, December 1, 2024. – For 2025, the MNB has decided to keep unchanged the individual capital buffer rates of credit institutions identified as domestic systemically important (O-SIIs). O-SII buffers continuously contribute to the stability of the financial system in a turbulent economic environment and support the sustainable provision of lending to the real economy and other critical credit institution functions.

In its regular annual review of 2024, the Magyar Nemzeti Bank (MNB) identified seven banking groups as systemically important (Other Systemically Important Institution – O-SII) based on end-2023 data, these institutions are the same as last year.

The revised distribution of the scores measuring systemic importance has not reshaped significantly. As a result, the current O-SII buffer rates, which has reached their final value by 2024 after their gradual rebuilding from 2022, can be considered proportional to the systemic importance looking forward for 2025 as well. The capital position and outstanding profitability of systemically important banks steadily enable them to grow in a balanced manner and provide the critical credit institution functions, while maintaining the capital buffers required by the MNB. The buffers strengthen the ability of institutions to withstand shocks, which is a particularly important objective in the current risk-laden economic environment. The MNB is going to adjust the rates as necessary during its annual regular review based on future material changes in the systemic significance of credit institutions.

Capital buffer rates for systemically important credit institutions from 2025

 Detailed information on the identification of systemically important institutions

Magyar Nemzeti Bank