Banking sector liquidity down in December
shutterstock
Forint liquidity of Hungaryʼs banking sector fell in December from a month earlier, which was mainly reflected in declines in average stocks of three-month deposits, the National Bank of Hungary (MNB) said in a report on Friday based on preliminary data, cited by state news agency MTI.
Although the average stocks of credit institutionsʼ overnight deposits and other deposits increased, the extent of the decrease in the average stocks of three-month deposits was greater. The average monthly stock of three-month deposits has been declining steadily from month to month as a result of the introduction of a quantity limit on the instrument in October 2016.
The stock of three-month deposits, the MNBʼs main sterilization instrument, fell by HUF 100 bln to HUF 75 bln during December, while the average stock was down HUF 108.7 bln at HUF 136.6 bln.
The average stock of overnight deposits rose by HUF 54 bln to HUF 911.6 bln.
The MNBʼs average stock of external assets was up by HUF 150.8 bln at HUF 7,858.9 bln. The stock of external assets stood at HUF 7,841.3 bln at the end of December, up from HUF 7,538 bln at the start of the month.
Transactions increased the stock of external assets by HUF 417.6 bln, while revaluations and other factors reduced it by HUF 114.2 bln. The increase can primarily be related to transfers received from the EU and a drop in the average exchange rate of the forint.
The average stock of central government deposits was up by HUF 52.1 bln at HUF 1,039.8 bln in December, but the stock stood at HUF 693.9 bln at the end of the month following a HUF 267.4 bln drop.
The monthly average of the banking sectorʼs current account balances with the MNB exceeded reserve requirements by HUF 13.8 bln, a more significant extent compared with the previous month. In December, reserve requirements amounted to HUF 197.9 bln.
MOL Shareholders Approve Dividend of Around HUF 250/Share
Gov't Awards HUF 6.5 bln of Subsidies to SMEs in Underdevelo...
Hungary's Largest ESG Consultancy Formed by Merger of EY, De...
Liz & Chain Rooftop Bar Debuts Sustainable Cocktails
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.
