Banking sector liquidity up in July, says MNB
Image by Jessica Fejos
Forint liquidity of Hungaryʼs banking sector rose in July from a month earlier, which was mainly reflected in an increase in the average stock of credit institutionsʼ overnight deposits, the National Bank of Hungary (MNB) said in a report released Friday based on preliminary data, according to state news wire MTI.
The average stock of overnight deposits rose by HUF 144.2 billion to HUF 877.7 bln in July, the MNB report shows.
Following the zero stock in recent months, the MNB once again disbursed one-week loans to financial institutions in July. It also concluded one, three, six and twelve-month transactions with credit institutions at the EUR/HUF swap tenders providing forint liquidity.
The MNBʼs average stock of external assets fell by HUF 316.9 bln to HUF 7,586.1 bln. The stock of external assets stood at HUF 7,390.5 bln at the end of July, down from HUF 7,854.3 bln at the start of the month. Transactions decreased the stock of external assets by HUF 283.5 bln, and revaluations and other factors by a further HUF 180.2 bln.
The decline in the average stocks partly reflected the carry-over effect of the maturity of swap transactions related to the forint conversion of householdsʼ foreign currency loans in June, but the strengthening of the forint exchange rate in July also pointed to a decrease, MTI noted.
The stock of three-month deposits, the main sterilization instrument of the central bank, remained unchanged at HUF 500 bln in July, but the average stock was down HUF 50 bln at HUF 500 bln.
The average stock of central government deposits was down by HUF 411.3 bln to HUF 1,045 bln in July. The stock stood at HUF 1,456.3 bln at the start of the month.
The monthly average of the banking sectorʼs current account balances with the MNB exceeded reserve requirements by HUF 4.6 bln, the usual amount. In July, reserve requirements amounted to HUF 186.9 bln.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.