Hungarian central bank maintains 0-percent countercyclical capital buffer rate at continuously low level of cyclical systemic risks

Based on the cyclical systemic risk indicators, lending has a healthy structure even with dynamic expansion; therefore, the increase of the countercyclical capital buffer is not justified at present. Considering the relevant factual data and the forward-looking information, the Financial Stability Council maintains the countercyclical capital buffer rate at 0 percent as of 1 October 2019. Given the dynamics of lending, the MNB will continue to closely monitor credit market developments.

As the press release said, The Financial Stability Council (FSC) of the National Bank of Hungary/Magyar Nemzeti Bank (MNB) has decided to maintain the countercyclical capital buffer rate applicable to domestic exposures at 0 percent. Based on the cyclical overheating and vulnerability indicators for the financial system, it is not justified to change the countercyclical capital buffer rate in effect.

While the dynamic domestic lending processes imply an ascending phase of the lending cycle, the net credit outflow cannot be considered excessive either overall or in the retail and corporate segments separately.