Lending increases, money flows from banks

According to the MNB, the lending process in Hungary is in a good direction, and the issuance of loans is constantly increasing.

Creditors’ retail loan portfolio for 3 consecutive months,

  • Corporate loan portfolio has increased significantly and continuously for seven consecutive months compared to previous periods.

Compared to July 2016, a loan of nearly HUF 110 billion was granted to the Hungarian population, which resulted in an 18% improvement in 2017!

Home loans and personal loans resulted in a 78% improvement over 2016 results.

  • home loan contracts by 33%,
  • and personal loans increased by 42%.

With the spectacular improvement, we achieved the high value that the independent bank expert said in 2015.

The real breakthrough is

  • that foreign currency loans are favorable forint loans,
  • Free-to-use mortgages divided into 2 parts:
  1. partly home loans,
  2. it was partly replaced by personal loans.

 

The demand for credit increased among the Hungarian population for 5 months.

The demand for credit increased among the Hungarian population for 5 months.

During this time, we borrowed nearly HUF 29 billion more than retail loans. In July 2017, after three months, the retail loan portfolio only increased, resulting in an increase of 1.2% compared to previous years.

The decline in average APRs is also spectacular compared to June

  • The cost of borrowing for new loans fell from 4.85% to 4.79%,
  • personal loans have a big change: from 15.4% to 14.9%.

The MNB introduced a new qualifying home loan to the housing market, and the qualifying banks began selling it in July 2017. These values ​​could not yet be felt in the current statements on mortgage rates.

 

The change is also noticeable in non-qualifying floating rate products.

The change is also noticeable in non-qualifying floating rate products.

What happened to retail deposits during this period?

  • HUF deposits decreased by HUF 3.7 billion,
  • foreign currency deposits, on the other hand, increased by 10.5 billion.
  • Banks gave 0.32% interest on term deposits, which was previously 0.5%, which is not a significant change.
  • Based on retail deposit data for July, it was HUF 7,530 billion, showing a 7.5% improvement, thus the loan-to-deposit ratio continued to decline.

Demand for corporate loans is rising dramatically!

  • Compared to last year, this year saw a spectacular increase in borrowing, a HUF 498 billion (!) Increase, or 8.6%, and their loan portfolio is now close to HUF 6,200 billion.

And corporate deposits?

  • Over the past year, deposits have also increased significantly in the corporate sector. According to current data, this increase is almost 14%, to HUF 6,620 billion.

 

There is a growing willingness to lend both to households and companies!

There is a growing willingness to lend both to households and companies!

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