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Comparison of Capital Adequacy Rules for Credit Institutions and Investment Firms*

Financial and Economic Review | 2026

Paper Details

Authors: Seregdi L.; Bóta N.K.

DOI: 10.33893/FER.25.1.79

Journal: Financial and Economic Review

Year: 2026

Publisher: Magyar Nemzeti Bank

Document Type: Article

Open Access: All Open Access; Gold Open Access; Green Open Access

Cited by: 0

Abstract

Capital adequacy requirements play a key role in the current prudential regulatory system for the financial sector, both for credit institutions and investment firms. This study summarises how the system of requirements has developed, which elements are similar for credit institutions and investment firms, what the differences are, and what justifies them. It is also examined whether the capital requirement regulatory system for investment firms has become more effective, as a result of the special framework based specifically on the particular risks of investment firms that was developed for them starting in 2021. Finally, the paper also discusses possible directions in which capital requirements regulation may further evolve in these sectors. © 2026, Magyar Nemzeti Bank. All rights reserved.

Keywords

capital adequacy; credit institutions; investment firms; prudential regulation