[ad_1]
The Magyar Nemzeti Bank (MNB) Financial Stability Board has made decisions on the practical application of impairment training related to the time limit of the repayment moratorium, on the possibility of repealing the capital reserve buffer rule for strengthen the resilience of the credit institution sector and preserve lending dynamics. and the maintenance of restrictions on dividends, share repurchases and variable remuneration, the Central Bank reported in a statement.
Photo: Napi.hu / Dániel Szabó
The European Banking Authority (EBA) has recently decided to extend the application of its guidelines on payment deferrals until March 31, which stipulates, among other things, that bank exposures with a deferral of more than 9 months must be classified as restructured by credit institutions if the payment is rescheduled. it was rescheduled after September 30 of this year. According to upcoming MNB regulations, despite the restructured rating, corporate exposures for which there are no financial difficulties based on monitoring data do not need to be reclassified to a larger impairment category: the central bank announced that the Management circulars and regulations on changes will be published in January 2021.
In its announcement, the MNB also clarified that the central bank is developing a system of conditions for the retail portfolio, through which clear cases can be eliminated, in which case it is not necessary to classify them in the category of greatest deterioration.
According to another central bank decision, in the economic situation caused by the epidemic, the MNB will not yet temporarily sanction a credit institution for violating the rules on the level of the capital buffer. As a reminder, the MNB originally decided in April this year to temporarily tolerate violations in this regard. The central bank, on the other hand, expects market participants to meet this capital buffer requirement by at least 50 percent by June 30, 2022 and early 2023.
According to its prospectus, the MNB also expects that credit institutions will not pay dividends or contract irrevocable dividend payment obligations for 2019 and 2020, or owe the results of previous years, no later than September 30, 2021. Likewise , refrain from repurchases of shares in order to reward shareholders until the end of September next year (treasury shares repurchased for remuneration purposes are not included in this category) and consider its remuneration policy.
The extension of the moratorium was announced by Prime Minister Viktor Orbán on December 19 and will take effect on January 1.
[ad_2]
