Lenders' Sentiment Declines With Worsening Macro Outlooks
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The sentiment of Hungarian banks has deteriorated amid worsening macroeconomic outlooks for both the local and external economies, state news wire MTI reports, citing a quarterly gauge of confidence by the National Bank of Hungary (MNB).
The survey, conducted in October, shows 89% of banks reported a deterioration in the domestic and external environments in the previous half year, while 63% augured a continued worsening.
Around 53% said the creditworthiness of corporate clients has deteriorated and 76% pointed to a further decline over the next two quarters.
About 37% reported a drop in the creditworthiness of retail borrowers and 71% said that decline would continue.
A deterioration of lending portfolio quality is expected by 79% of banks.
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