Josef hírek

2012.11.10. 19:49

Hungary banks lending less - watchdog head

Budapest, November 8 (MTI) - Banks in Hungary have less capacity and willingness to lend, though low demand for credit is a bigger obstacle, the head of financial market watchdog PSZAF told a conference on Thursday.

Budapest, November 8 (MTI) - Banks in Hungary have less capacity and willingness to lend, though low demand for credit is a bigger obstacle, the head of financial market watchdog PSZAF told a conference on Thursday.

Karoly Szasz said negative tendencies were apparent between the banking system and the real economy.

 

Whereas financing in the banking system is appropriate overall, profitability gaps growing within it are eroding lossmaking banks reserves, he told the association of financial and economic auditors (MPGEKE).

 

The system is stable, strong and flexible, while its capital structure outstanding and liquidity is sufficient, he said. But European rules requiring higher capital reserves are among factors expected to dent Hungarian banks relative advantage over their peers, he said.

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