Featured Product

    MNB Announces CCyB Rate and Measures to Support Lending Amid Pandemic

    January 22, 2021

    MNB announced transitional measures for the supervisory capital requirements for credit institutions, indicating that it will temporarily tolerate a possible breach of the capital buffer requirement. However, MNB expects market participants to meet this capital buffer requirement by at least 50% by June 30, 2022 and to comply fully with the requirement by January 01, 2023. MNB also recommended that credit institutions should maintain restrictions on dividend payments, share repurchases, and variable remuneration payment until September 30, 2021. As another announcement, MNB conveyed the decision to maintain the countercyclical capital buffer (CCyB) rate at 0% from January 01, 2021.

    Finally, as an amendment to the management circular on credit risk factors under IFRS 9, MNB published the detailed guidelines on the application of default and restructuring categories with respect to the repayment moratorium. EBA had recently decided to extend the application of its guidelines on payment moratoria until March 31, 2021. This states, inter alia, that bank exposures with a moratorium of more than nine months must be classified as restructured by credit institutions if the payment was rescheduled or rescheduled after September 30, 2020. According to the MNB circular, despite the restructured rating, it is not necessary to reclassify corporate exposures for which there is no financial difficulty according to the monitoring data. In the case of the retail portfolio, the central bank develops a system of conditions through which it is possible to objectively filter out clear cases in which it is also not necessary to classify in the category resulting in higher impairment. Retail exposures that are subject to higher impairment but are properly repaid within six months of their removal from the moratorium may be reclassified to the safer category and the accumulated impairment may be released.

    Keywords: Europe, Hungary, Banking, Regulatory Capital, COVID-19, CCyB, Dividend Distribution, Basel, Loan Moratorium, Reporting, Macro-Prudential Policy, IFRS 9, Credit Risk, MNB

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    HKMA Announces Launch of Data Repository on Sustainable Finance

    The Hong Kong Monetary Authority (HKMA) announced that the Green and Sustainable Finance (GSF) Cross-Agency Steering Group has launched the information and data repositories and outlined the progress made in advancing the development of green and sustainable finance in Hong Kong.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    NGFS Report on Integration of G-Cubed Model into NGFS Scenarios

    The Network for Greening the Financial System (NGFS) published a report that explores the feasibility of integrating the G-Cubed general equilibrium model into the NGFS suite of models.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8301