The National Bank of Hungary has maintained the countercyclical capital buffer for domestic exposures at 1 percent from Oct. 1, 2027, continuing its existing neutral-risk setting. It also retained the 1 percent sectoral Systemic Risk Buffers for residential and commercial real estate exposures, which have applied since Jan. 1, 2026. The central bank assesses cyclical systemic risks as slowly increasing but still low and broadly neutral, meaning a higher countercyclical buffer is not justified. Housing market overvaluation and increased collateral encumbrance are raising real estate exposure risks, but the bank said these are addressed through the targeted sectoral buffers. Risks in the residential and commercial property markets have not changed significantly since those requirements were introduced.
National Bank of Hungary keeps countercyclical and real estate sectoral capital buffers at 1 percent
The National Bank of Hungary kept its countercyclical capital buffer for domestic exposures at 1 percent from Oct. 1, 2027, as cyclical systemic risks remain low and broadly neutral. It also maintained 1 percent sectoral buffers for residential and commercial real estate exposures amid persistent property market risks.