Hungary central bank lifts countercyclical capital buffer to 1% from July 2025 (updated)

MBH Bank Nyrt

25/06/2024 17:39

(Updates with detail)
       BUDAPEST, June 25 (Reuters) - The National Bank of
Hungary said on Tuesday it will increase the countercyclical
capital buffer rate for banks to 1% due to high geopolitical and
macroeconomic uncertainty, with effect from July 1, 2025. 
    The NBH said in a statement that the "notable profitability"
of banks and their strong capital position enables it to apply
the countercyclical capital buffer "in a so-called positive
neutral manner, i.e., in periods preceding overheatedness".
    A 0.5% countercyclical capital buffer rate will be effective
from July 1, 2024 until the change a year later and the rise
will not affect the lending capacity of banks, the NBH said. 
    "Banks will still have approximately HUF 1,900 billion 
($5.14 billion) free capital on sector level, the entire use of
which may enable the placement of up to HUF 24,000 billion 
($64.91 billion) in loans," they said.
($1 = 369.7200 forints) 

 (Reporting by Anita Komuves; Editing by Jason Hovet and
Alexander Smith)
 ((jason.hovet@thomsonreuters.com;))