Hungarian banking system declared stable and highly profitable in latest central bank report
Change language:
The Hungarian banking system remains “stable” and “resilient to shocks”, while bolstered by “outstandingly high profitability”, Zita Fellner, a senior economist at the National Bank of Hungary (NBH), said presenting a report on Wednesday.
Fellner pointed to the ample liquidity, adequate capitalisation and the high quality of loan portfolios of local lenders, highlighting the key messages in the central bank’s latest Financial Stability Report.
She said the local banking sector would meet regulatory requirements on liquidity and capital adequacy even in the event of a severe shock. Lending capacity of the banking system is “abundant” and no credit supply constraints can be identified, she added.
Local lenders’ earnings reached a historical high of HUF 934bn in the first half of 2024, partly due to volatile and one-off items, she said. NPL ratios in the corporate and retail segments reached historical lows of 3.8pc and 2.3pc, respectively, she added.
She acknowledged that the quality of the corporate loan portfolio could be at risk from the depreciation in the commercial real estate market through bank collateral values, but said those risks were mitigated by the fact that the market may have reached the bottom of the cycle.
Earlier identified risks have abated, she said, noting low jobless rates, low levels of credit among companies under liquidation and the extension of the deadline for borrowers of prenatal baby support credit to fulfil their pledges to have children.
The unequivocal position of Independence that is claimed by the Central Bank of Hungary / The Hungarian National Bank – that is “supposed” to have no influence nor interference, in its operation, decision and opinions – arising out of or from, the Orban – Fidesz Government, does have growing numbers of Cynics.
It is widely accepted, both from in-side Hungary, from those of “Learned” economic, financial and banking RESPECTED backgrounds, and in Brussels, in particular, the intellectual capabilities of the present Governor of the Central Bank of Hungary – far exceeds that of the current Finance Minister of Hungary – Mihaly Varga.
It is a case of Varga – thinks he KNOWS – look what he has DELIVERED Hungary as against the present Governor – knowing the NEEDS from usage of the Position he holds – to “enfold” to-gether the Economic & Financial position of Hungary.
It is of PUBLIC knowledge – that no “Love Match” exists between the Orban Fidesz Government, in this case, from the Minister RESPONSIBLE, in dealing, with the Central Bank of Hungary, that individual being non other than the “present” Minister of Finance – Mihaly Varga.
Varga and the Governor – opinions muchly DISTANCED.
Varga in fact, when ever confronted to discuss decisions from the Hungarian Central Bank – the desk of the Governor, that are not at “ease” with him, in his limited intellectual capacity, projects a pattern, in his behaviour, that it could be said, openly outwardly – displays an individual – one that FUNCTIONS – with a DEEP inferior complex.
Varga is CHALLENGED possible feels threatened by the intellectual superiority of the present Governor of the Hungarian Central Bank.
In Trust and HOPE – for the FUTURE of Hungary, there must not be STRONGER infiltration nor influence SEEN – in the Orban – Fidesz Government – with COMMUNICATION coming out from the Central Bank of Hungary.
Hungary – we Do Not – want it to be a case of ;
“Do as we SAY, not as we Do.”