Hungary's financial sector is stable but still faces many challenges, financial market watchdog PSZÁF said in a report published on Tuesday. Lack of economic growth, uncertainty surrounding next year's budget, profitability problems and the partly related capital burdens pose the biggest risk to the development of Hungary's financial sector, according to the report. In spite of all measures, the Hungarian banking system remains stable, both in terms of solvency and liquidity, PSZAF chairman Karoly Szasz said at a press conference presenting the report. The system's capital adequacy ratio is 14.8%, which is favourable in international comparison but not to the degree as it was a few years earlier, he said. Hungarian banks' foreign owners have put more than HUF 1,300 billion into their units since 2007, including more than HUF 450n in the last year and a half, he added.