MNB: Forint conversions reduce retail lending stock of Hungarian banks in March
The retail lending stock of Hungarian banks fell significantly in March from the previous month primarily due to the effect of forint conversions and settlements of foreign currency loans between banks and their loan holders, fresh data from the National Bank of Hungary (MNB) shows.
Banks’ retail lending stock fell almost HUF 687 bln to HUF 6.213 trillion. Revaluations of FX loans increased the overall stock by HUF 20.3 bln; revaluations of forint loans reduced the stock by HUF 26.6 bln.
The stock of forint loans increased by HUF 2.757.3 trillion and the stock of foreign currency loans fell HUF 3.437 trillion due to transactions.
Retail deposits diminished, in total by about HUF 46 bln to HUF 6.817 trillion.
There were net inflows of HUF 17.7 bln and HUF 32.9 bln, respectively, into forint and foreign currency deposits. Revaluations however diminished deposits by HUF 96.4 bln, mainly because of forint deposit values decreasing by HUF 91.9 bln.
The forint firmed about 1.2% to the euro from the end of February to the end of March, based on the central bankʼs daily fixing.
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