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Corporate lending stock of banks up in November - MNB

Corporate lending stock of Hungarian banks rose in November from the previous month with nearly 30% of the increase reflecting revaluation effects, fresh data from the National Bank of Hungary (MNB) show, state news wire MTI reports.

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In real terms and excluding revaluation effects, the stock of banksʼ corporate loans has been rising since the end of 2016.

The corporate lending stock of banks was up HUF 161.5 billion at HUF 8.7 trillion according to non-adjusted data. Transactions increased the lending stock by HUF 113.4 bln, while revaluations and other changes increased it by HUF 48.1 bln.

Transactions raised the stock of forint loans by HUF 16.5 bln and they raised the stock of foreign currency loans by HUF 83.2 bln. Revaluations cut the forint loan stock by HUF 4.7 bln and raised the FX loan stock by HUF 54.2 bln.

Holdings by credit institutions of bonds issued by non-financial corporations were down HUF 1.4 bln due to revaluations but rose HUF 13.7 bln because of transactions, bringing the stock of bonds to HUF 144.7 bln.

Corporate deposits meanwhile rose by HUF 389.6 bln to HUF 9.264 tln in November. Deposit placements raised the stock by HUF 365.7 bln and revaluations raised it by a further HUF 23.9 bln.

According to MNB, there were just HUF 11.9 bln net inflows into foreign currency deposits while net inflows into forint deposits reached HUF 353.8 bln. Revaluations increased FX deposits by HUF 43.9 bln and they reduced forint deposits by HUF 20 bln.