According to the Financial Stability Report of the National Bank of Hungary (MNB) published in November 2016, the Hungarian banking sector fulfils liquidity and capital adequacy requirements, and it is well positioned to withstand potential shocks. In 2016, the quality of portfolios improved substantially; banks have significantly reduced the
volume of non-performing loans and thus cleaned up their balance sheets. These factors,
as a whole, may benefit net profitability already in the medium term. The year 2016 saw a major turnaround in SME lending: the falling lending trend has been reversed and lending is expected to grow at an annual rate of 5-10 percent. However, low interest rates, which are jeopardizing profit prospects, and risks to growth in the European Union are clouding the growth outlook of the Hungarian banking sector.

For more information please check the attached file on the right side of the page!

(Ministry for National Economy)