MLS banks raise SME outlays over HUF 300 bln last year
Banks that participated in the Market-Based Lending Scheme (MLS) raised their outlays to SMEs by HUF 302 billion last year, well over the HUF 195 bln commitment, the National Bank of Hungary (MNB) said today, Hungarian news agency MTI has reported.
The MNB rolled out the incentive scheme for SME lending in the spring of last year, allowing banks whose SME outlays reach 50-100% of commitments a 20%-75% reduction in their capital reserve requirement for the credit.
The MNB said 15 of the 17 banks participating in the scheme last year had exceeded their commitments, while two had fallen short of their respective marks.
This year, participants have committed to raise SME credit a further HUF 170 bln.
The MLS has made a “substantial contribution” to lending growth, the central bank said, noting that SME lending stock, including loans to sole proprietors, was up 12%, while total corporate loan stock rose 4%.
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