Lender Liquidity Increases Further

Banking

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Forint liquidity of the domestic banking sector rose in March, indicated by an increase in average stock of central bank bills and lenders' current account deposits, the National Bank of Hungary (MNB) said in a monthly release of data on Monday.

The average stock of MNB bills stood at HUF 4.214 tln in March, rising by HUF 66 bln from the previous month.

Credit institutions' average current account balances rose by HUF 274 bln to HUF 10.959 tln.

The monthly average reserve account balance reached HUF 11.114 tln in March, rising from HUF 10.838 tln in the previous month. The reserve requirement was HUF 3.895 tln during the month

MNB phased out its O/N deposits offered at quick tenders last October, making reserve accounts the main instrument for sterilizing liquidity.

The average stock of currency in circulation stood at HUF 8.378 tln in March, rising by HUF 158 bln from the previous month.

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