MNB accepts HUF 400 bln for three-month deposits
The National Bank of Hungary (MNB) accepted HUF 400 billion in placements in its three-month deposit for banks at a tender on Wednesday, the same as the announced limit, Hungarian news agency MTI.
The tender reduced the three-month deposit stock to HUF 900 bln from HUF 937 bln.
Banks bid to place HUF 521.5 bln in the facility, the central bank’s main liquidity sterilization instrument, slightly more than the HUF 437 bln of expiring three-month deposits.
The tender was the third at which the MNB placed a cap on the amount of placements. It announced a HUF 900 bln limit on total fourth-quarter three-month deposit placements in late September.
Introducing the cap has been one of several measures the MNB has taken to move banks’ liquidity out of central bank instruments and into government securities or the lending market. It reduced the frequency of tenders for the three-month deposit to once a month from once a week from August.
At the first capped tender held on October 26, the MNB accepted HUF 100 bln, below the HUF 150 bln announced limit, and at the second tender held on November 23 it accepted HUF 400 bln, below the HUF 450 bln announced limit.
In the statement released on Tuesday the monetary policy council of the MNB announced that it set a HUF 750 bln upper limit on the stock of three-month central bank deposits at the end of the first quarter of 2017.
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