The National Bank of Hungary kept the countercyclical capital buffer rate for domestic exposures unchanged at 1 percent from 1 July 2027. It concluded that cyclical systemic risks in the financial system remain low to neutral overall, so a requirement above the 1 percent rate set for a neutral risk environment is not warranted. The central bank said the buffer, together with the sectoral Systemic Risk Buffer for real estate market risks, supports banks’ shock-absorbing capacity without restricting lending capacity. Its cyclical systemic risk map and cyclical systemic risk index point to a broadly low, neutral risk environment, although risks linked to real estate exposures have risen because of housing market overvaluation and increased collateral encumbrance. Those risks are being addressed separately through a 1 percent sectoral Systemic Risk Buffer for both housing and commercial real estate segments from 1 January 2026. In its annual review of material third countries for domestic banking system exposures, the central bank left the list unchanged at Albania, Montenegro, Russia, Serbia, Ukraine and Uzbekistan.