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Oct 24, 2016

Hungary's central bank introduces measures to boost lending

"The adjustment period which lasts until 2020 will support a recovery in lending ... while also strengthening financial stability," the National Bank of Hungary said

Hungary's central bank will give commercial banks more time to build capital buffers to meet its regulatory requirements, with the measure aimed at boosting lending, the central bank has said.

Reuters reports that the central bank said that the eight "systemically important" banks in Hungary will have to build capital buffers worth 0.5 to 2 percent from 2017 onwards, gradually, over a period of four years.

"The adjustment period which lasts until 2020 will support a recovery in lending ... while also strengthening financial stability," the National Bank of Hungary said in a statement.