On Mar. 31, 2025, HUN CB announced decision to keep size of domestic capital buffer.
Decided that, as of Jul. 1, 2025, CCyB rate applicable to domestic exposures will be 1 % in a neutral risk environment and it will not change as of Apr. 1, 2026; more details.
On Jun. 30, HUN CB increased countercyclical capital buffer to 0.5%.
HUN CB increased countercyclical capital buffer, reducing credit, housing market risks.
Overview
In recent quarters, HUN CB measured a substantial and increasing overvaluation in the housing market, coupled with increase in risks in the banking sector related to lending.
Risks have not been mitigated, even with uncertainty associated with Russian war.
Financial stability board decided to increase bank capital requirements and increase countercyclical capital buffer ratio to 0.5% for first time since introduction 6 years ago.
Effectiveness
0.5% countercyclical capital buffer ratio for Hungarian exposures from Jul. 1, 2023.
Jun. 2023 CCyB Postponement, SyRB Reactivation
On Jun. 22, 2023, HUN CB postponed the activation of countercyclical capital buffer rate at the planned rate of 0.5% from Jul. 1, 2023, to one year later, on Jul. 1, 2024.
Thus, the CCyB applicable will be 0% from Jul. 1, 2023 and 0.5% from Jul. 1, 2024.
Due to the special risks in the global commercial real estate market, HUN CB will reactivate the systemic risk buffer (SyRB), suspended in the pandemic, for prevention.
HUN CB will discuss details of SyRB's application with market participants during the summer and will develop, with them, the detailed SyRB conditions by the fall of 2023.
Sep. 2023 Buffer Unchanged
On Sep. 29, 2023, HUN CB maintained plan for CCyB rate of 0.5% from Jul. 1, 2024.
Due to development of housing and credit market risks, Financial Stability Council left CCyB rate and schedule unchanged; CCyB will be activated at 0.5% on Jul. 1, 2024.
Cyclical and residential real estate market risks eased further in Q3, process that may continue in short term; in medium term, recovery of economic activity and return of real wage growth may lead to renewed increase in cyclical risks so no change justified.
HUN CB will maintain CCyB of 0.5% effective from Jul. 1, 2024, as of Oct. 1, 2024.
Until Jul. 1, 2024, a 0% rate will still apply to domestic exposures; HUN CB to monitor systemic risks in banking sector and prescribe additional capital buffer if needed.
Oct. 2023 Buffer Unchanged
On Oct. 18, 2023, HUN CB announced its decision to leave the timing for the activation of the 0.5% countercyclical capital buffer rate unchanged on Jul. 1, 2024.
Mar. 28, 2024 Buffer Unchanged
On Mar. 28, 2024, HUN CB announced decision to keep countercyclical capital buffer schedule at 0.5% on Jul. 1, 2024, applicable from Apr. 1, 2025 to Hungary exposures.
Also confirmed that until Jul. 1, 2024, 0% rate will still apply to domestic exposures.
Jun. 2024 Buffer Increased
On Jun. 25, 2024, HUN CB increased CCyB rate in order to preserve financial stability.
CCyB rate of 0.5 percent applicable to domestic exposures effective Jul. 1, 2024 remains unchanged, but HUN CB prescribes a rate of 1 percent effective Jul. 1, 2025.
Jun. 25, 2024 Decree Published
On Jun. 25, 2024, HUN CB published decree 31/2024, of Jun. 24, 2024, repeals decree 27/2022 with effect Jun. 27, 2024, and inserts 2025 countercyclical capital buffer rate.
Decree 31/2024 enters into force on the day following publication, on Jun. 26, 2024.
Document dated Jun. 25, 2024, was received on Jul. 1, 2024 due to a new feed.
Sep. 2024 Buffer Unchanged
On Sep. 30, 2024, HUN CB announced decision to keep countercyclical capital buffer of 1% from Jul. 1, 2025 until Oct. 1, 2025 in view of the low cyclical risk level.
Dec. 2024 Buffer Announcement
On Dec. 31, 2024, HUN CB announced decision to keep countercyclical capital buffer of 1% until Jan. 1, 2026, from a decision of Jul. 1, 2024 in view of low cyclical risk level.
In addition, HUN CB decided to apply CCyB rates corresponding to the decisions made by authorities of third countries significant for the domestic banking system for 2025.
It drew attention of institutions concerned to proper fulfillment of obligation to closely monitor, report and calculate institution-specific capital buffers related to the decisions.
From Q4 2024, HUN CB will make the decision on the applicable CCyB rate based on a revised methodology using expanded and restructured the so-called cyclical systemic risk map (CRKT) that is used to monitor cyclical risks, containing additional indicators.
HUN CB will determine applicable CCyB rate on a quarterly basis, taking into account positive neutral CCyB rate, development of cyclical systemic risks arising from credit.
HUN CB will determine the scope of significant third countries in the second quarter of each year and then consider the applicable rates during a fourth quarter of each year.
Mar. 2025 CCyB Unchanged
On Mar. 31, 2025, HUN CB announced decision to keep size of domestic capital buffer.
Decided that, as of Jul. 1, 2025, CCyB rate applicable to domestic exposures will be 1 % in a neutral risk environment and it will not change as of Apr. 1, 2026; more details.
