MNB is amending Decree No. 32/2014. (IX. 10.) on the regulation of the debt-service-to-income ratio for installment payments and the loan-to-value ratio (Debt Cap Regulation). The amendment is being made in view of the establishment of the legal background creating the simplification of valuation process. Following this amendment, the market value of real estate can be determined using a statistically based valuation methodology to calculate the loan-to-value ratio. With the amendment, MNB intends to support the simplification of lending processes and strengthen bank digitization and efficiency. The application of statistics-based valuation also reduces the administrative burden of borrowing on the customer side. The amendment to the Debt Cap Regulation will enter into force on the day following its publication in the Hungarian Gazette.
Effective Date: Gazette+1 Day
Keywords: Europe, Hungary, Banking, Credit Risk, Loan-to-Value Ratio, Debt Cap Regulation, Regulatory Capital, RRE, CRE, MNB
Previous ArticleHM Treasury Consults on Supporting Wind-down of Critical Benchmarks
The UK authorities have published consultations with respect to the Basel requirements for banks. The Prudential Regulation Authority (PRA) published the consultation paper CP16/22 on rules for the implementation of Basel 3.1 standards.
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.
The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.