Banks' corporate lending stock climbs close to 11% in 2021

Banking

Image by Shuttestock.com

Hungarian banks' corporate lending stock rose 10.7%, or around HUF 1 trillion, last year, news agency MTI reports, citing a quarterly report by the National Bank of Hungary (MNB).

Including corporate bonds subscribed by lenders, banks' outstanding credit to non-financial companies increased 18.4%, the central bank said, adding that the rise was supported by a decision to wind up its Bond Funding for Growth Scheme (BGS) when the subscription allocation is reached.

Banks' SME loan book expanded 16.8%.

In the fourth quarter alone, corporate lending stock rose HUF 397 billion, as forint loans increased HUF 338 bln and FX loans increased just HUF 59 bln.

MNB said the volume of market-based loan contracts came close to pre-pandemic levels, reaching 78% of the total.

The median monthly interest rate for corporate loans increased 1.9 percentage points between September and December and 2.8 percentage points between June and December, amid a tightening cycle. The report shows the average rate for variable-rate loans rose 115% quarter-on-quarter to 4.6%, climbing at a slower rate than the three-month BUBOR.

A survey of loan officers augurs a pickup in demand for corporate loans, although the MNB noted that the survey was conducted before the outbreak of the war in Ukraine.

ADVERTISEMENT

Romania PPI Inflation Rises Further in August Analysis

Romania PPI Inflation Rises Further in August

Gov't Clears HUF 200 bln Aid for SMEs in Energy-Intensive Ma... Government

Gov't Clears HUF 200 bln Aid for SMEs in Energy-Intensive Ma...

Róbert Ésik Joins EY as Partner Appointments

Róbert Ésik Joins EY as Partner

Teachers' Strike Demonstration Attracts Thousands in Capital City

Teachers' Strike Demonstration Attracts Thousands in Capital

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.