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Takarékbank: Hungarians have more savings, a lot in cash

MNB

Hungarian householdsʼ savings have grown over the past 18 months thanks to low inflation and an increase in real wages but Hungarians still hang on to much of their cash, Takarékbank told Hungarian news agency MTI today on the occasion of World Savings Day.

Citing data from the National Bank of Hungary (MNB), Takarékbank said the net financial position of households rose to HUF 30.88 trillion at the end of the first half of 2015 from HUF 25.2 trillion at the end of 2013.

This has also been helped by a fall in householdsʼ financial liabilities. The settlement between lenders and consumers on foreign currency loans reduced the volume of retail loans by almost HUF 600 bln as a one-off effect, also resulting in extra income for consumers who had already repaid their loans. Householdsʼ ability to put aside savings has also been helped by lower loan repayments.

The analysis said consumersʼ willingness to undertake risks remains moderate.

Among various forms of savings, the percentage of cash and non-fixed deposits showed the highest increase. Their combined share within householdsʼ financial assets rose to 17% at the end of the first half of 2015 from 14.5% at the end of 2013. The volume of cash grew to almost HUF 3.5 trillion from HUF 2.65 trillion, or 9% of the total, which is high by international comparison, Takarékbank noted.

The ratio of government securities within all financial assets kept by households rose to 6.9% from 5.8% and that of investment fund units increased to 10.6% from 9.8% in the past 18 months, they added.

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