Banking sector liquidity rises in November

Banking

Image by Shutterstock.com

Forint liquidity of Hungary's banking sector increased in November, mainly reflected in an increase in credit institutions' average stock of one-week deposits with the central bank, the National Bank of Hungary (MNB) said in a preliminary release of balance sheet data on Monday, according to a report by state news wire MTI.

The average stock of one-week deposits rose HUF 1.14 trillion to HUF 7.39 tln.

The one-week depo rate has moved in tandem with the base rate since late June, but the central bank's Monetary Council said at a monthly policy meeting in November that MNB "must be ready to set the interest rate on the one-week deposit above the base rate", allowing it to respond to a recent increase in short-term risks in financial and commodity markets "quickly and flexibly". 

Policymakers raised the base rate by 30 bp to 2.1% at the November meeting, after CPI spiked at 6.5% in October. Late in November, MNB announced a rate of 2.9% for its one-week deposit facility ahead of a tender, 80 bp over the base rate.
The average stock of central government deposits fell HUF 1.051 tln to HUF 3.162 tln in November.

At the end of the month, total liabilities were at HUF 25.721 tln, up by HUF 251 bln from the end of October.

MNB noted that the banking sector's reserve account balances exceeded the HUF 323.2 bln requirement by HUF 8.2 bln.

ADVERTISEMENT

Business, consumer sentiment improve in January Analysis

Business, consumer sentiment improve in January

Márki-Zay tests positive for COVID-19 Elections

Márki-Zay tests positive for COVID-19

New partner announced at act Bán & Karika Attorneys at Law Appointments

New partner announced at act Bán & Karika Attorneys at Law

Gov't Calls for technical screening of László Papp Arena City

Gov't Calls for technical screening of László Papp Arena

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.