ADVERTISEMENT

MNB: Five years may be needed to bring corporate lending back to trend level

MNB

Image by Jessica Fejos

It could take "at least five years" to bring corporate lending stock back to levels close to the long-term trend, even if loan growth reaches an annual 6-7%, the rate required to support sustainable economic development, the National Bank of Hungary (MNB) said in a report on Monday, according to state news agency MTI. 

(Photo: Jessica Fejos)

The central bank noted that corporate lending stock, as a percentage of GDP, had fallen since 2009, creating a "gap" between actual borrowing levels and the desired equilibrium. A return to the long-term trend could be achieved in a shorter period, a "minimum three years", if lending growth in the SME segment reaches 10%, which the MNB said was "justified" as these businesses had been hit harder by the credit crunch.

ADVERTISEMENT

Rate-setters augur slower decline in CPI in 2022 Analysis

Rate-setters augur slower decline in CPI in 2022

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

Magyar Bankholding chairman to serve as CEO as well Appointments

Magyar Bankholding chairman to serve as CEO as well

ITM, capital gov't agree on support for public transport City

ITM, capital gov't agree on support for public transport

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.