Hungarian central bank mulls lower capital requirements for SME-friendly banks
Central bank introduces new instruments aimed at incentivising ‘market-based' lending
Hungary's central bank could lower capital requirements for banks that lend more to small businesses as part of a new policy package designed to stimulate corporate activity.
The Central Bank of Hungary on November 3 said it will introduce several policy instruments next year as part of a "market-based" scheme requiring banks to lend to smaller companies.
The instruments include an interest rate swap facility, whereby the central bank assumes some of lenders' risk and a "preferential" deposit
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