MNI BRIEF: NBH Tells Banks To Guard Against Real Estate Risk

The National Bank of Hungary announced a series of changes to its financial stability toolkit on Monday, in a move intended to align it more closely with a government-backed mortgage scheme and to mitigate against potential risks in the domestic real estate market. (See MNI INTERVIEW: Hungary Outlook Stagflationary - Ex-NBH's Reiff)

From 1 January 2026, banks will be required to hold a sectoral systemic risk capital buffer of 1% for exposures to residential or commercial real estate mortgages, the NBH said in a statement which highlighted both the “significantly increased activity in the housing market and the risks surrounding the commercial real estate market.”

“Expectations for stable financing of mortgage loans will continue to strengthen from October 2026,” the Bank added, noting both changing mortgage market processes and increased mortgage lending linked to the government’s Otthon Start programme, which offers loans of up to HUF 50 million at a fixed 3% interest rate. (See MNI EM NBH WATCH: Rate Hold, Price Risks Seen Despite Weak Growth)