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Banking sector liquidity fell in October, MNB says

Forint liquidity of Hungaryʼs banking sector fell in October from a month earlier, which was mainly reflected in a decrease in the average stock of credit institutionsʼ one-week deposits with the National Bank of Hungary, state news wire MTI report citing a report released by MNB today.

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According to preliminary data the average stock of one-week deposits was down by HUF 187.7 billion at approximately HUF 2.059 trillion.

The average stock of overnight deposits including preferential ones rose by HUF 118.2 bln to HUF 1.049 tln.

The average stock of central government deposits was up by HUF 679.5 bln at HUF 2.831 tln in October. The stock stood at HUF 2.897 tln at the end of the month, up from HUF 2.784 tln.

The average stock of currency in circulation continued to rise during the month, growing by HUF 60.5 bln, and reached HUF 7.108 tln by the end of it.

MNBʼs average stock of external assets was up by just HUF 8.3 bln at HUF 11.69 tln.

The stock of external assets stood at HUF 11.833 tln at the end of October, down from HUF 12.455 tln at the start of the month. Transactions decreased the stock of external assets by HUF 770 bln and revaluations due to FX-rate changes increased it by HUF 159 bln. 

A decline in the end-of-month stocks was related to the swap facilities providing euro liquidity and the funding thereof at the end of September. The decrease in the stock primarily reflected the correction of the temporary increase in the previous month.

In October the monthly average of the banking sectorʼs savings accounts exceeded the amount of minimum reserves by HUF 17.8 bln. Reserve requirements amounted to HUF 272.1 bln in the month.