The National Bank of Hungary (MNB) has finalised and published the conditions for applying a sectoral systemic risk buffer (sSyRB) addressing systemic risks in the Hungarian real estate market, alongside the related data reporting framework. The requirement will apply from 1 January 2026 and is set at 1% on a consolidated basis for exposures to domestic parties collateralised by residential or commercial property in Hungary. The measure follows a 1 September 2025 decision of the Financial Stability Board (FSB) requiring all credit institutions to establish an sSyRB for real estate collateralised exposure subgroups. The MNB developed the detailed conditions in consultation with market participants and completed the required notification procedures with EU authorities, and has published the detailed conditions and institution-specific decisions on its systemic risk buffer webpage. It also indicated that, given banks’ capital position and profitability, the buffer should not materially constrain lending capacity, with remaining free capital buffers supporting additional lending capacity equivalent to tens of trillions of HUF. The MNB will review the applicable systemic risk buffer rates at least annually.
National Bank of Hungary 2025-12-01
National Bank of Hungary finalises 1% sectoral systemic risk buffer for real estate collateralised exposures from 1 January 2026
The National Bank of Hungary has finalized a sectoral systemic risk buffer (sSyRB) to address systemic risks in the real estate market, effective 1 January 2026, set at 1% for property-collateralized exposures. Developed with market participants, it aligns with the Financial Stability Board's directive and is not expected to significantly constrain lending. The MNB will review the buffer rates annually.