Banking sector HUF liquidity falls in Dec amid EUR swap tenders
Image by Shutterstock.com
Forint liquidity of Hungary's banking sector fell in December as the central bank allotted euro liquidity swaps to manage end-of-quarter tensions on swap markets, state news wire MTI reports, citing preliminary data released by the National Bank of Hungary (MNB).
MNB allotted a combined EUR 5.392 billion of euro liquidity swaps at tenders in December.
The central bank started the practice of holding the end-of-quarter tenders that "strengthen the efficiency of monetary transmission and maintain price stability", as well as ease swap market tension, in September 2020.
The fresh data show the average stock of overnight deposits of credit institutions with MNB, including preferential deposits, fell HUF 701 bln to HUF 1.778 tln in December.
The average stock of lenders' one-week deposits with the central bank were up HUF 106 bln at HUF 7.496 tln.
The average stock of central government deposits fell HUF 722 bln to HUF 2.441 tln.
The average stock of external liabilities rose HUF 1.216 tln to HUF 4.346 tln.
Total liabilities stood at HUF 26.401 tln at the end of December, up HUF 677 bln from a month earlier.
MNB noted that the banking sector's reserve account balances exceeded the HUF 346.3 bln requirement by HUF 14.7 bln.
Hungary CPI Drop Acknowledged at IMF/World Bank Spring Meeti...
Hungary to Address Future of Cohesion Policy During EU Presi...
2/3 of Hungarians Have Basic Expectation of Home Office
Time Out Market to Open in Budapest Next Year
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.
