MNB issued guidance on the correct presentation of certain regulatory modifications, which were announced to reduce the economic impact of COVID-19 pandemic, in liquidity reporting. MNB provided information regarding reports on cash flow, liquidity coverage ratio (LCR), and foreign exchange financing compliance indicator (DMM/KONSZDMM/KDMM). Announcements also cover information on reporting of repayment moratorium. Additionally, MNB announced requirements for the extraordinary reporting for enhanced monitoring of lending, liquidity, and portfolio quality of credit institutions to assess the negative effects of the COVID-19 pandemic. MNB has provided the list of credit institutions that are required to provide this extraordinary information.
MNB issued a letter to domestic lending and payment institutions asking them to prepare for the period following the end of the repayment moratorium by strengthening their business and monitoring processes. The institutions have been asked to develop financing schemes and payment offers that will enable them to remedy any payment difficulties of their debtors. The central bank will continuously monitor the restructuring of the internal operations of lending and payment institutions, their adaptation to the new economic situation, and their preparations for the post-payment moratorium period.
With regard to the decision of MNB on extraordinary reporting, MNB requires credit institutions to comply with the following:
- One-time submission of the supervisory report with the identification code L11 MNB for the first quarter of 2020, by May 08, 2020 at the latest
- Submission of HDMM/HKONSZDMM/HKDMM board-code surveillance reports on a monthly basis, for the first time for March 2020 and for the last time for December 2020
- Submission of supervisory report with the MNB identification code V01 on a weekly basis, for the first time on March 23-29 2020 and for the last time for the period from December 28, 2020 to January 03, 2021
- Submission of supervisory report with the MNB identification code L74 on a monthly basis, for the first time for March 2020 and for the last time for December 2020
- Submission of the monitoring report with board code SF1901 on a monthly basis, for the first time for March 2020 and for the last time for December 2020
- Submission of a textual report in response to the questions set out in the Annex to the MNB decision on a weekly basis, starting no later than on March 24, 2020, thereafter no later than on Thursday each week until December 31, 2020
Keywords: Europe, Hungary, Banking, COVID-19, Reporting, LCR, Loan Moratorium, Liquidity Risk, Credit Risk, MNB
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