MNB published a statement and a list of questions and answers (Q&A) that clarify the treatment of loans in context of the repayment moratorium that was put in place to ease the impact of COVID-19 pandemic. The repayment moratorium not only gives customers temporary relief with the nine-month repayment stop but also guarantees a predictable installment afterwards. Due to the moratorium, "no one can increase the monthly repayment from 2021," specifies the MNB statement; this can only change for a variable-rate loan, which has nothing to do with the moratorium. MNB has been releasing communications on this to inform creditors since the beginning of the repayment moratorium. Additionally, a section of the MNB website offers an overview of the financial measures announced in the country in response to the pandemic.
Keywords: Europe, Hungary, Banking, Loan Moratorium, Q&A, Credit Risk, Loan Repayment, COVID-19, MNB
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous ArticleBank of Italy Announces Regulatory Measures to Ease Impact of COVID
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.