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