Systemic risk capital buffer requirement targeting real estate market risks to come into effect from 1 January 2026

Budapest, 1 December 2025 – In line with its September announcement, the MNB has finalized the conditions for the application of the sectoral systemic risk buffer (SyRB) mitigating systemic risks in the real estate market, as well as the related data reporting. The requirement, valid from 1 January 2026, increases the shock absorbing capacity, but given the robust capital position and outstanding profitability of the banking system, it will not significantly affect the ample lending capacity of banks. The remaining free capital buffer of the banking system provides the opportunity for additional lending equivalent to tens of trillions of forints.

In view of the current level and expected increase of systemic risks in the real estate market, the Financial Stability Board (FSB), by its decision of 1 September 2025, requires all credit institutions to establish a sectoral systemic risk capital buffer (sSyRB) on a consolidated basis for exposure subgroups collateralised by real estate.

Following the September announcement, the MNB, in consultation with market participants, developed the detailed conditions for supporting the application of the sSyRB and the detailed rules for the relevant data reporting, and carried out the necessary notification procedures with the EU authorities. The level of the sSyRB was set at 1 percent on a consolidated basis for exposures to domestic parties collateralised by either residential or commercial properties in Hungary as of 1 January 2026.

The capital buffer requirement increases in a targeted and proportionate manner the resilience of the financial system. The remaining free capital buffer of the banking system provides the opportunity for additional lending of tens of trillions of forints.

Based on the decision of the FSB on 22 October 2025, the MNB published the detailed conditions of the capital buffer requirement and the individual decisions for institutions on the systemic risk buffer subpage. The MNB reviews the applicable systemic risk buffer rates at least annually.

MAGYAR NEMZETI BANK