Budapest, 30 June 2025 – As of 1 July 2025, the MNB has set the Countercyclical Capital Buffer (CCyB) rate applicable to domestic exposures at the 1 percent level required in a neutral risk environment. This level will not change as of 1 July 2026. The application and maintenance of the 1 percent domestic CCyB rate increase the shock resilience in the uncertain economic environment, and with regard to the robust capital position and profitability of banks, it does not affect the ample lending capacity of banks. The banking system's remaining free capital buffer allows for additional lending worth tens of billions of forints.
Currently, the Cyclical Systemic Risk Index (CSRI) of the MNB, which summarizes the main indicators of the Cyclical Systemic Risk Map (CSRM) applied by the MNB, as well as the related map indicators also point to a low, neutral level of risks. Low risk is visible in most monitored categories, while the categories of excessive, competition between credit institutions endangering financial stability and of the overvaluation of investment assets indicate a slightly elevated level of risks. This is mainly related to the development of overvaluation in the housing market and the high profitability of the banking system in the elevated interest rate environment, still not representing an excessive cyclical systemic risk condition requiring direct intervention. Looking ahead, a gradual improvement in the macroeconomic environment is likely to lead to a continuous, but not excessive increase in cyclical systemic risks.
Given the low, essentially stagnant level of cyclical financial systemic risks, it is not justified to set a CCyB rate that exceeds the 1 percent positive neutral CCyB rate, which is applicable in a neutral risk environment, effective from 1 July 2025. Accordingly, the MNB will maintain the 1 percent CCyB rate applicable from 1 July 2025 as of 1 July 2026, as well.
The MNB also reviewed the list of third countries that are material in terms of the domestic banking system's exposures and that should be monitored in terms of the build-up of cyclical risks. The material third countries remained unchanged: Albania, Montenegro, Russia, Serbia, Ukraine and Uzbekistan.
The MNB determines the applicable CCyB rate on a quarterly basis, considering the positive neutral CCyB rate, the development of cyclical systemic risks arising from credit market overheatedness and all other relevant factors. The MNB determines the list of third countries that are material in terms of the exposures of the domestic banking system by the end of the second quarter of each year.
Information on the countercyclical capital buffer and other information related to its operation
Magyar Nemzeti Bank