Hungary Banking System 'Strong', 'Stable' - Varga

Banking

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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.

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