In the wake of the Covid pandemic and due to the economic consequences of the war in Hungary's neighbourhood, full co-operation is required across the nation to keep the Hungarian economy on a level footing, with the banking sector's primary role being the funding of economic growth.
According to an announcement by the National Bank of Hungary on Tuesday, as of 1 April, the central bank will raise the mandatory reserve ratio to 10%, with no interest paid to banks on 25% of the reserve. The increase in the mandatory reserve ratio is aimed at curbing demand; however, in the current market environment, interest unpaid in respect of the reserve ratio represents a significant disadvantage for both the banking sector and the economy.
In view of the above, the Hungarian Banking Association calls for the withdrawal of the announced central banking measure in order to maintain the ability of the banking sector to finance the economy.
2 March 2023
Hungarian Banking Association