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Corporate and retail lending climb in August - MNB

Telco

Hungarian banksʼ stock of corporate loans, as well as deposits, rose in August from the previous month, fresh data from the National Bank of Hungary (MNB) show. At the same time, the retail lending stock continued to climb in August, state news wire MTI reported.

Excluding seasonal effects, businesses have been borrowers every month since February.

Unadjusted data show the corporate lending stock rose by HUF 101.8 billion to HUF 6,332.2 bln in the month of August. Transactions raised the lending stock by HUF 91.7 bln, while revaluations and other changes lifted it by another HUF 10.1 bln.

Some HUF 3,593.3 bln of the total stock was denominated in forints and HUF 2,661.3 bln in foreign currency.

Meanwhile, the stock of corporate deposits rose by HUF 291.4 bln to HUF 6,901.5 bln, on net deposits rather than revaluations. Some HUF 4,655.3 bln was in forint deposits, and HUF 2,246.3 bln in FX deposits.   

The forint weakened about 0.4% against the euro between the end of July and the end of August, calculating with the central bankʼs daily fixing.

Retail lending continues to climb

The retail lending stock of Hungarian banks rose in August from the previous month, continuing an increase that started in the summer of 2016, fresh data from the MNB show.

The retail lending stock rose HUF 25.7 bln to HUF 5,848.8 bln during the month. Transactions increased the stock by HUF 29.7 bln, while revaluations cut it by HUF 4.0 bln.

The stock of retail deposits rose HUF 31.0 bln to HUF 7,550.6 bln, meanwhile. Households placed HUF 21.5 bln in forint deposits and HUF 9.9 bln in foreign currency deposits. Foreign currency deposits made up about 17% of all retail deposits at the end of the month.

The MNBʼs transaction-based indices show that lending to households has been growing, in real terms, since May this year after a steady contraction that started in September 2009, reported MTI. The contraction was partly related to government measures, such as an early repayment scheme of FX mortgages in 2011, compensation from banks to retail borrowers for unfair banking practices, and the conversion of retail FX loans into forint loans in 2015.

Households have been net depositors in real terms every month since December 2014, with a single exception.

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