Banking sector liquidity rises in May
Forint liquidity of the Hungarian banking sector grew in May, reflected by increases in the average stock of credit institutions' one-week deposits as well as their preferential deposits with the central bank, the National Bank of Hungary (MNB) said in a preliminary release of balance sheet data, according to news agency MTI.
The release shows the average monthly stock of O/N deposits with the central bank, including preferential deposits, rose HUF 96 billion to HUF 2.265 trillion in May. Excluding the preferential deposits, O/N deposit stock averaged just HUF 25.5 bln.
The average stock of one-week deposits increased HUF 358 bln to HUF 4.876 tln.
The average stock of currency in circulation continued to rise during the month, growing by HUF 51 bln, and reached just over HUF 7.443 tln by the end of it.
MNB's average stock of external assets was down by HUF 311 bln at HUF 11.381 tln. The decline was mainly due to the strengthening of the forint exchange rate and the closing of swap transactions with credit institutions providing forint liquidity.
The central bank noted that the banking sector's reserve account balances exceeded the HUF 303 bln requirement by HUF 46 bln.
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