MNB to modify debt cap rules from January
Photo by Shutterstock.com
The National Bank of Hungary said on Wednesday that on January 1, 2022 it will be modifying its decree regarding debt cap rules to help the spread of good practices, digitalization endeavors, and maintain responsible lending practices, according to a report by state news wire MTI.
Based on a review of market experiences, MNB is making a number of proposals to streamline bank lending and to simplify and speed up credit assessment processes.
Most of the modifications proposed by the Financial Stability Council expand and supplement the exceptions listed in the decree.
In line with digitalisation efforts, electronic verification of the actual value of receivables will be made available to lenders. Provisions for automatic credit facility review processes for revolving loans will be simplified to make financial services more efficient.
In the case of amendments to credit agreements aimed at reducing the term of the loan contracts, if there is no increase in the installments of the customer, the calculation of the income installment ratio does not have to be performed by the lender at the same time as the prepayment of the loan.
Hungary Gasoline Prices 3% Over Regional Avg
Hungary to Address Future of Cohesion Policy During EU Presi...
Cordia’s Marina City Project Begins
Budapest Airport Wins 'Best Airport in Eastern Europe' for 1...
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
