Hungary Central Bank to Impose Lending Limits, Mulls Bad Bank
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Hungary’s central bank will impose limits on household lending to cut down on “excessive” indebtedness and called for rule changes that spur banks to clean up their portfolios and stabilize finances.
The Magyar Nemzeti Bank wants to impose an upper limit on the payment-to-income ratio for all retail loans and tighten regulations on proving disposable income, according to the Financial Stability Report published today in Budapest. It may also introduce stricter loan-loss rules and a “bad bank” to accelerate the cleanup of lenders’ non-performing loans.