The NBH financial stability report supports rate cut bets
The National Bank of Hungary released its new stability report on Thursday. The NBH sees the stability of the domestic financial sector strong as the capital adequacy ratio rose to 17.4% by the end of 2013. The stress test showed that even under severe but plausible negative scenario, the banking sector’s capital needs to comply with regulatory requirements would amount to HUF 16-18 billion in the period to the end of 2015, which represents a very low risk compared with the capital injections received by banks in the recent period. Additionally from liquidity perspective, the banking sector has an adequate liquidity buffer to absorb significant shocks.
Read the full report: FX Daily
KBC