March 28, 2018 / 3:43 PM / 24 days ago

Hungary cbank launches new measure to curb bank funding risks

BUDAPEST, March 28 (Reuters) - The National Bank of Hungary has launched a preventive measure to limit excessive reliance of the banking system on funding from financial corporations, with the new regulation taking effect from July, the central bank said on Wednesday.

“The ratio limits funds from financial corporations, weighted according to currency and residual maturity,” it said.

“The ratio considers all funding received from financial corporations, but exceptions and benefits ensure that the requirement does not materially affect normal banking operations.”

It said a 30-percent upper limit to be launched from July would not require an adjustment from most banks but would prevent the build-up of excessive reliance on wholesale funding. (Reporting by Gergely Szakacs and Sandor Peto)

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