BUDAPEST Dec 30 Hungary's central National Bank
of Hungary has published additional capital buffer requirements
for the top nine banks effective from Jan. 1, 2017 in order to
strengthen the financial system, it said on Wednesday.
The banks include OTP Bank, Italy's Unicredit
, Austria's Raiffeisen and Erste.
"The sufficiently long preparation period ensures that
market participants can smoothly meet the new requirement while
also boosting their lending activity," the central bank said on
"The additional capital requirement will strengthen the
stability of the domestic banking system by increasing the
shock-absorption ability of the affected banks," it said.
The bank said in had selected the banks under European Union
rules which call for each member state to define its "other
systemically important institutions" by January 1, 2016.
It said the additional capital buffer could amount to a
maximum f 2 percent of an individual banks' risk-weighted total
OTP is expected to build an additional 2 percent capital
buffer based on current estimates, while KBC's unit Kereskedelmi
es Hitelbank and Unicredit will have to build 1 percent
additional capital, the central bank said.
For the remaining six banks, the additional capital buffer
would probably be 0.5 percent, it said.
(Reporting by Krisztina Than; editing by Jason Neely)