Banking sector forint liquidity falls in April

Banking

Photo by Shutterstock.com

Forint liquidity of Hungary's banking sector fell in April, reflected mainly in a decline in the average stock of lender's overnight deposits with the central bank, the National Bank of Hungary (MNB) said in a monthly report on Friday, according to a report by state news wire MTI.

The average stock of O/N deposits fell by HUF 475 billion to HUF 468 bln during the month. The stock of preferential O/N deposits fell by HUF 105 bln to zero as the central bank phased out the instrument, as announced earlier, amid a tightening cycle.

Meanwhile, the average stock of one-week deposits rose by HUF 367 bln to HUF 9.569 tln.

MNB noted that average balances on lenders' reserve accounts exceeded the HUF 381 bln requirement by HUF 11 bln during the month.

The data show average stock of currency in circulation reached HUF 8.325 tln in April, rising HUF 21 bln from a month earlier.

SUPPORT THE BUDAPEST BUSINESS JOURNAL

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.

Support the BBJ

Finance