According to the MNB decrees on the minimum reserves, credit institutions having operating licence in Hungary including Hungarian branches of foreign credit institutions are required to hold minimum reserves with the central bank in respect of their liabilities.
Based on the decision of the MNB's Monetary Council, the regulation on minimum reserves has been amended as of 1 April 2023. The amendments to the minimum reserve system are contained in the MNB Reserve Decree on the calculation of the minimum reserve and the method of its establishment and placement, and in the MNB Decree on the rate of the minimum reserve ratio. The minimum reserve ratio has been increased to 10 percent, which must be complied with on a daily basis to ensure the long-term maintenance of liquidity. Above the minimum rate of 10 percent, an additional rate of up to 5 percent, which can be chosen on a percentage basis, has been introduced to give credit institutions the necessary room for manoeuvre to deal with liquidity shocks. For the freely chosen reserve ratio, the regulation requires compliance on a monthly average basis. The amendments entered into force with the monthly reserve period starting on 1 April 2023.