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HUNGARY: NBH Say Hungarian Banking System Remains Stable

HUNGARY

Highlights from the NBH's semi-annual financial stability report:

  • The Hungarian banking system remains stable, and its shock resilience is strong.
  • The liquidity of the banking system has continued to rise from a high base, with the operational liquidity buffer equivalent to 72 per cent of deposits in February 2024.
  • The annual growth rate of the loan portfolio of the household sector may have reached its lowest point at a level of 3 per cent in 2023, while the corporate sector rate may have bottomed out at 2 per cent in early 2024.
  • Based on the results of the stress test, the domestic credit institution sector would meet the regulatory requirements for liquidity and capital adequacy even in the event of a serious shock. The lending capacity of the banking system, and thus its role in supporting economic growth, would remain adequate even after a severe shock with a very low probability.

See the full report here.
 

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