28 March 2018

The Magyar Nemzeti Bank has made a decision on the countercyclical capital buffer rate applicable from 1 April 2018. The level of cyclical systemic risks is moderate, and therefore the Financial Stability Board - with a view to supporting sustainable lending - has decided to maintain the 0 percent rate.

The purpose of the countercyclical capital buffer is to increase the stability and resilience of the financial intermediary system across credit cycles. The MNB sets the level of the countercyclical capital buffer on a quarterly basis.

There has been no substantial change in the level and dynamics of cyclical systemic risks compared to the previous quarterly review, despite the lending turnaround in the credit market and the buoyant residential real estate market activity. Though the growth in lending is observable in both the household and corporate segments, net credit outflow cannot be considered excessive. The degree of the persistently and significantly negative benchmark credit-to-GDP gap, as well as the current level and dynamics of the supplementary indicators on overheating and vulnerability signal a moderate level in cyclical systemic risks.

Accordingly, the Financial Stability Board of the MNB has decided to keep the countercyclical capital buffer rate applicable to domestic exposures at 0 percent. Foreseeably no change is expected over the forthcoming one-year horizon, which may support the sustainable lending activity of credit institutions.

Further information on the countercyclical capital buffer and other information necessary for the functioning thereof