Budapest, 28 September 2018. – The Magyar Nemzeti Bank has decided on the countercyclical capital buffer rate applicable from 1 October 2018. The level of cyclical systemic risks is moderate, therefore increasing the countercyclical capital buffer is still not justified. Nevertheless, besides maintaining the buffer rate at 0 percent, the MNB closely monitors the buoyant developments in lending.
The MNB has decided to keep the countercyclical capital buffer rate applicable to domestic exposures at 0 percent. According to the assessment of the Financial Stability Council, despite the continuously invigorating lending trends, the net credit outflow cannot be considered excessive in any segment, and the growth of the outstanding loans stock is occurring in a sounder structure compared to pre-crisis period.
With a view to regional trends domestic developments also show that in the current environment there is significant room for the sustainable expansion of lending. The value of the significantly negative benchmark credit-to-GDP gap, as well as the current level and dynamics of the supplementary indicators on overheating and vulnerability signal low level of cyclical systemic risks. Foreseeably, no change in the buffer rate is expected over the forthcoming one-year horizon, which may support the sustainable expansion of credit institutions’ lending activity.
The purpose of the countercyclical capital buffer is to increase the stability and resilience of the financial intermediary system across credit cycles. The MNB reviews the level of the countercyclical capital buffer on a quarterly basis.
Magyar Nemzeti Bank