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Presenting the latest biannual Financial Stability Report, Ádám Banai, a managing director at the central bank, said the banking system’s liquidity was “ample” and its capital position “strong”.
He added that the sector’s capital adequacy ratio stood at 20.7% at the end of June, representing a capital buffer of more than HUF 2.3 trillion.
After a slight decline, Banai said banks’ 12-month rolling return on equity reached 19.1% in June, he said. Interest revenue from the state is on the rise as banks’ bond portfolios grow, he added.
State interest subsidies are expected to reach HUF 562 bln in 2025, a 24% increase on the year. Banai highlighted growing risk on the real estate market, noting an 18.8% overvaluation of home prices.
He added that outlays of Home Start subsidized credit for first-time home buyers could reach HUF 1.9 tln by end-2026.
Without a significant expansion of supply, he said the scheme could add a 15 percentage point increase to home prices by that time.
He said the corporate lending market had expanded 2% year-on-year, but did not yet indicate a “real turnaround”.
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