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Banking sector liquidity down in November

Telco

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Forint liquidity of Hungaryʼs banking sector fell in November from a month earlier, mainly reflected in declines in the average stocks of credit institutionsʼ overnight and three-month deposits, the National Bank of Hungary (MNB) said in a report on Wednesday based on preliminary data.   

The average stock of overnight deposits fell by HUF 35.4 billion to HUF 857.6 bln, state news wire MTI cited the MNB as saying.

The stock of three-month deposits, the MNBʼs main sterilization instrument, fell by HUF 100 bln to HUF 175 bln during November, and the average stock was down HUF 49.4 bln at HUF 245 bln.

The average monthly stock of three-month deposits has been declining steadily from month to month as a result of the introduction of a quantity limit on the instrument in October 2016, MTI recalled.   

The MNBʼs average stock of external assets was up by HUF 91.3 bln to HUF 7,708.1 bln. However, the stock of external assets stood at HUF 7,537.8 bln at the end of November, down from HUF 7,636 bln at the start of the month. 

Transactions decreased the stock of external assets by HUF 81.1 bln, and revaluations and other factors by a further HUF 17.1 bln. FX payments made by the government contributed to the decrease in the end-of-month stocks.

The average stock of central government deposits was up by HUF 24.3 bln to HUF 987.7 bln in November. The stock stood at HUF 961.3 bln at the end of the month.

In November no new contracts were concluded at one-week and three-month loan tenders. The MNB concluded further one, three and twelve-month transactions with credit institutions at its EUR/HUF FX swap tenders providing forint liquidity. The stock of swaps continued to increase. 

The monthly average of the banking sectorʼs current account balances with the MNB exceeded reserve requirements by HUF 11.6 bln, a more significant extent compared with the previous month. In November, reserve requirements amounted to HUF 193.6 bln.

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