Hungary Banking System 'Strong', 'Stable' - Varga
Image by Roman Motizov / Shutterstock.com
Finance Minister Mihaly Varga said Hungary's banking sector is "strong and in good working order" in spite of the worsening international environment in a post on Facebook on Friday.
Credit rating agencies have confirmed this in their latest reviews, Varga said.
He noted that the Hungarian banking sector's capital adequacy ratio is double the regulatory requirement, while its profitability is around 50% more than its European Union peers.
In spite of the war, the local banking system's non-performing loan ratio is a low 3.4%, the sector's financing is "stable" and its loan-to-deposit ratio is more favorable than the EU average, he added.
Hungary's banking system has "significant reserves" and its liquidity coverage ratio is almost double the regulatory minimum, Varga said.
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.