MNB Issues Circular on Credit Assessment of Customers Using Moratorium
MNB formulated its expectations on the assessment of creditworthiness of customers using the payment moratorium, in a management circular sent to credit institutions, financial enterprises, and domestic and cross-border payment service providers. MNB expects that the assessment of debtors' creditworthiness will not deteriorate due to the moratorium that has been provided as a relief measure amid the COVID-19 pandemic.
MNB is of the opinion that the concerned debtors cannot be recorded as bad debtors only on the basis of the information on the moratorium and their situation must be examined individually in each case. To maintain systemic lending activity and prudent risk management, MNB expects credit institutions to report data on the moratorium to the Central Credit Information System (CCIS) in accordance with the applicable legislation. MNB will pay close attention to the fulfillment of these expectations during its on-site inspections and off-site supervision activities.
Related Links (in Hungarian)
Keywords: Europe, Hungary, Banking, COVID-19, Loan Moratorium, Credit Risk, Loan Repayment, Basel, MNB
Featured Experts
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous Article
APRA Proposes to Increase Transparency of Banking DataRelated Articles
EBA Sets Out Work Priorities and Deliverables for 2021
EBA published its annual work program for 2021. The work program describes the activities and deliverables for the coming year in the context of the six key strategic areas of work.
PRA Proposes to Amend SS11/13 on Internal Ratings-Based Approaches
PRA is proposing, via the consultation paper CP14/20, to introduce two complementary expectations on the level of mortgage risk-weights in UK for banks applying the internal ratings-based approaches.
ECB Confirms Compliance of €STR with Financial Benchmark Principles
ECB published its statement of compliance with the IOSCO principles for financial benchmarks developed by IOSCO.
OSFI Updates Timelines for Implementation of IFRS 17
OSFI updated the timelines for implementation of IFRS 17 on insurance contracts.
IFRS Consults on Global Approach to Sustainability Reporting
IFRS launched a consultation to assess the demand for global sustainability standards.
EIOPA Sets Out Work Priorities for 2021-2023
EIOPA has set out the work priorities for 2021-2023, taking into account the current market situation in light of the COVID-19 pandemic.
US Agencies Finalize Three Interim Final Rules Issued Amid Pandemic
US Agencies (FDIC, FED, and OCC) finalized three interim final rules that were published in March and April this year to ease the impact of disruptions caused by the COVID-19 pandemic.
US Agencies Finalize Interim Final Rules Issued Amid Pandemic
US Agencies (FDIC, FED, and OCC) finalized two rules, which are either identical or substantially similar to the interim final rules in effect and issued earlier this year.
APRA Proposes to Increase Transparency of Banking Data
APRA announced that it is resuming consultation on the confidentiality of data submitted to APRA by the authorized deposit-taking institutions.
EIOPA Consults on Use of Risk Mitigation Techniques Under Solvency II
EIOPA is consulting on a supervisory statement on the use of risk mitigation techniques by insurance and reinsurance undertakings.
