MNB: Banking sector liquidity falls in May



Hungarian banksʼ average holdings of three-month deposits, the main instrument used by the National Bank of Hungary (MNB) to control liquidity, fell by HUF 54.2 billion to HUF 2.270 trillion in May from the previous month, showing a drop in the sectorʼs forint liquidity, data released by the MNB today show, according to Hungarian news agency MTI.

Stock of the three-months deposits fell even though banks could no longer avail of the MNBʼs two-week deposits, which were phased out at the end of April. 

Stock of the two-week deposits stood at zero in May, down from HUF 271.5 bln in April.

The MNB announced earlier that it was replacing the two-week deposits with the three-month deposit as its main tool for soaking up liquidity.

The data show the average stock of external assets edged down HUF 18.2 bln to HUF 8.772 tln, but the end-of-month stock dropped by HUF 220.7 bln to HUF 8.622 bln from April to May. The MNB attributed the latter decline to a maturing Swiss franc government bond and the issue of euro-denominated government bonds targeted at retail investors.


Drought-hit Farmers Get Compensation Weather

Drought-hit Farmers Get Compensation

Parliament Negates Mandatory Membership in MOK Parliament

Parliament Negates Mandatory Membership in MOK

Pólus Center Energy Consumption Down, Visitors up in 2022 Sustainability

Pólus Center Energy Consumption Down, Visitors up in 2022

Service Restarted on Full Length of Metro Line M3 City

Service Restarted on Full Length of Metro Line M3


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.